Trump's diesel export ban comments raise energy price concerns; Pentagon consults Musk on future warfare; Google unveils Gemini 4 Argon AI model

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

U.S. President Donald Trump's comments that he is still "thinking about" a diesel export ban raised worries that U.S. energy prices may rise further, while traders continue to keep a close eye on developments in the Middle East amid concerns over stalled U.S.-Iran peace talks.

The Pentagon is tapping into the expertise of prominent individuals including Tesla and SpaceX CEO Elon Musk to identify the military capabilities, technologies and weapons that the U.S. may need in future wars.

Google unveiled its most advanced AI model — Gemini 4 Argon — as the AI race continues to march on.

Investors are keeping a close watch on developments relating to energy supplies, after U.S. President Donald Trump's said he was still "thinking about" a diesel export ban, even as the U.S. oil industry cautioned that the move would pressure refineries to reduce production which would ultimately increase domestic energy prices.

Prices for diesel, a vital energy backbone for core American industries, have surged to record highs amid conflicts in Iran and Ukraine that disrupted global energy flows.

"So that's a lot of interruptions. But American refiners are running at record highs," Energy Secretary Chris Wright said, "and you will hear announcements from our friends in Europe about new diesel supplies that'll come to the market. That'll meaningfully push diesel prices down."

Over in the Middle East: worries that a lasting resolution to the Iran conflict may be delayed are taking hold, amid news of stalled U.S.-Iran peace talks. According to the Times of Israel, U.S. President Trump said that the "time has come" to either make a deal with Iran or "maybe blow them up."

Amid global conflicts, the Pentagon is looking to work on its warfare preparedness. Tesla and SpaceX CEO Elon Musk, defense technology entrepreneur and Anduril co-founder Palmer Luckey and former House Speaker Newt Gingrich have been asked to identify the military capabilities, technologies and weapons that the U.S. may need in future wars, Defense Secretary Pete Hegseth said Wednesday.

Over in markets, U.S. futures rose modestly as traders look to the start of a new trading month, while also bracing for the jobs report later this week. Futures tied to the Dow Jones Industrial Average added 99 points, or 0.2%. S&P 500 futures advanced about 0.3%, and Nasdaq-100 futures gained 0.2%. Asia markets opened mixed Thursday.

Traders are also digesting comments from Minneapolis Federal Reserve President Neel Kashkari who told CNBC in an exclusive interview that "inflation is still too high." He also said that the labor market looked "pretty good" but not "great."

The artificial intelligence race, meanwhile, continues to intensify. Google unveiled its most advanced AI model — Gemini 4 Argon — which is said to offer significant improvements in complex professional work, coding and cybersecurity.

The company plans to launch the new model in phases, starting with trusted cybersecurity partners while working with the U.S. government on pre-release safety evaluations.

—Justina Lee