Middle East Tensions and Tech Sector Woes Drive Market Concerns

Hello, this is Justina Lee writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.

Markets are once again keeping a close eye on renewed tensions in the Middle East, which could push oil prices higher. Reports that Iran attacked a cargo ship in the Strait of Hormuz, the prospect of another major oil producer leaving OPEC and fresh disagreements between Tehran and Washington have revived concerns about energy supplies.

Investors, meanwhile, are parsing an increasingly divided tech sector. Micron's stellar earnings and SK Hynix's plans for a blockbuster U.S. listing sent both stocks sharply higher, but Apple's newly announced price hikes dragged shares down 6%, highlighting continued weakness in the sector.

Tensions over the Strait of Hormuz appeared to flare up again after a U.S. official told MS NOW that Iran was behind an attack on a cargo ship near the coast of Oman. The ship was sailing under a Singapore flag, according to the Wall Street Journal, raising renewed concerns over one of the world's busiest oil shipping lanes.

Washington and Tehran are also at odds over the use of funds listed in the memorandum of understanding between the two countries. The speaker of Iran's parliament rejected claims by the Trump administration that the Islamic Republic's unfrozen assets would be used to purchase U.S. agricultural products.

U.S. officials, however, maintained that any released funds would remain subject to American approval.

"As the MOU states, the United States must approve how the funds are used," one U.S. official said. "As Vice President JD Vance announced this week, if Iranian assets are released, they will be used to purchase American agricultural products to feed the Iranian people."

The region's energy landscape is facing another potential source of uncertainty. Following the exit of the United Arab Emirates from OPEC in April, Iraq, the cartel's second-largest oil exporter, is reportedly seeking a higher output quota and has warned the group it could leave if demands are not met.

Reports suggesting Baghdad could end its membership in OPEC "did not reflect the Iraqi government's official position," Iraq's oil ministry said later on Thursday. Still, it reiterated the importance of reviewing oil production quotas, underscoring growing strains within the alliance.

Technology stocks, meanwhile, offered a more mixed picture.

Memory maker Micron surged 15% after posting blockbuster earnings, fueled by growing demand for memory amid the artificial intelligence boom.

That news, however, failed to lift the broader sector. Asian chip stocks reversed course Friday, with SK Hynix falling more than 3% while SoftBank Group tumbled 11% as investors grew wary of mounting costs of AI infrastructure.

The pressure wasn't confined to AI names. Apple shares slid more than 6% overnight, their steepest decline since April 2025, after the company announced price hikes on MacBooks and iPads, adding another headwind for the sector.