Oil Rises Above $110 Amid Iran War Impasse

US gasoline prices hovered near highs not seen since the start of the Iran war, and Brent crude rose to $110 a barrel, delivering a 5% price spike this week as the Trump administration mulled a response to Iran’s latest proposal.

The Islamic Republic has signaled it may be willing to accept an interim deal to reopen the Strait of Hormuz in exchange for Washington ending its blockade of Iranian ports, while postponing more complex negotiations over the country’s nuclear program. Tehran is insisting on keeping some control over shipping through the strait, a point likely to be contested by the White House.

Foreign leaders, meanwhile, are increasingly frustrated with the diplomatic impasse and the continued closure of the waterway, which has led to fuel rationing across much of Asia and Africa and fears of a global economic slowdown. In addition to candid criticism from Europe, a new Reuters poll shows President Donald Trump facing record low domestic approval in his second term.

—David E. Rovella

What You Need to Know Today

In a historic move, the United Arab Emirates said it will leave OPEC next month, a significant blow to the group. The UAE’s announcement raises questions about OPEC’s future just as it grapples with an unprecedented energy crisis triggered by the US and Israeli decision to wage war on Iran.

The UAE’s exit, after six decades of membership, is the culmination of years of tension with OPEC leader Saudi Arabia over oil output policy and regional political influence. While the UAE has talked in the past about quitting OPEC, Energy Minister Suhail Al Mazrouei said in an interview that the disruption caused by the war created an opportune time for the move.

Shell CEO Says Blockade May Mean Energy Shortages Last Into 2027

“We are talking about roughly 900 million barrels that haven’t been produced in the last couple of months and that’s been replaced essentially by stock drawdown,” Wael Sawan said.

Bloomberg Opinion

The UAE’s OPEC Exit Is Existential for the Oil Cartel

Three of the most dangerous words in the oil market are “OPEC is dead.” Its obituary has been written many times, and always prematurely, Javier Blas writes. But global finance provides an equally storied phrase: “This time is different.”

The Trump administration is said to have abruptly closed an investigation into allegations that Mark Zuckerberg’s Meta Platforms can access encrypted WhatsApp messages, ending a law enforcement inquiry into claims that challenge how the company markets the chat service’s privacy.

The probe was shut down soon after a Commerce Department investigator contacted other federal officials early this year to share his conclusions “thus far” and try to coordinate ongoing investigative work, according to records seen by Bloomberg News and people familiar with the matter. Through much of 2025, the special agent had been looking into claims that some Meta employees and contractors could see the content of encrypted WhatsApp messages. Meta has vehemently denied those allegations.

Two big Wall Street names are expanding their footprints. Citadel is said to be poised to start operating from Dubai after receiving regulatory approval in the hedge fund hub. The move will allow the firm’s first traders to start working from Dubai International Financial Centre.

Meanwhile, Jane Street Group has placed an offer to lease a new London office, a deal that will almost double its footprint in the UK capital. The move highlights the rapid expansion of the firm, which reeled in a Wall Street record $39.6 billion of trading revenue last year.

Iran War

Argentina Seeks Winter LNG in a War-Wrecked Market

Traders are closely monitoring any demand for natural gas as supply from Qatar and the UAE has been throttled due to the effective closure of the Strait of Hormuz and damage to Qatar’s Ras Laffan export facility.

US spending on power-plant equipment is expected to triple through 2030, primarily driven by the growth of data centers that may account for as much as 40% of total investment, according to a report Tuesday. The US market for electrical equipment is projected to reach $65 billion in four years, up from $20 billion last year, with data-center capacity expected to increase more than 350% to 110 gigawatts.

The boom in energy demand is driving up costs and wait times for power-generation equipment, a shift that will hinder development. Proposed data center projects accounting for about 600 gigawatts are still working to line up electricity supplies, compared with 183 gigawatts that have signed construction or power-supply deals with utilities. Meanwhile, the surge in demand is fueling utility costs for everyday Americans already facing affordability worries.

Followers of Donald Trump break into the US Capitol on January 6, 2021.

Bloomberg Opinion

Conservatism Could Save America. The Small-C Kind

While conservatives have historically found a home in the Republican Party, it’s not necessarily a partisan label, Abby McCloskey writes. Conservatives represented as many as 20% of Democrats until the last decade and continue to make up more than a quarter of independents.

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