Geopolitics

Oil prices surged as conflict in the Middle East intensified, sending Brent crude above $100 a barrel. U.S. stocks fell on Wednesday, with the S&P 500 down 0.3%, the Dow off 320 points, or 0.6%, and the Nasdaq down 0.5%. The average U.S. price of gasoline rose to $4.22 per gallon.

The U.S. government is directing funding into quantum computing under the CHIPS and Science Act, awarding $100 million each to D-Wave Quantum, Rigetti Computing and Quantinuum. D-Wave said it plans to build a 100,000-qubit annealing system and a 10,000-qubit gate-model machine. Rigetti will focus on miniaturizing readout electronics and advancing chip fabrication, while Quantinuum will work with GlobalFoundries to expand U.S.-based quantum semiconductor manufacturing. GlobalFoundries also signed a $375 million, five-year federal contract tied to domestic quantum manufacturing efforts, according to The Wall Street Journal.

The US military said it destroyed five Iranian crude oil tankers near Kharg Island after Iran’s Revolutionary Guard Corps targeted a US Navy warship twice with ballistic missiles over two days. Brent crude climbed and approached the $100-per-barrel level as investors weighed the risk of further disruption in the Strait of Hormuz. In China, consumer inflation rose for the first time since April, while factory-gate prices increased more than expected, driven by higher food and energy costs. GrafTech International said it will raise graphite electrode prices by at least 30%, sending its shares up 15%.

India’s Sensex and Nifty slid in early trade on Wednesday, falling to 75,060.61 and 23,506.10. Brent crude futures moved close to the $100-a-barrel level, trading at $99.33, as tensions in West Asia escalated. Heavyweights including HCL Tech and Infosys led the declines, after the Sensex had already ended the previous session down 0.73%.

The Trump administration said it had “profound concern” about Ford’s alleged links to Chinese technology and manufacturing, including relationships with companies such as battery maker CATL. It also criticized Ford for delaying plans to move production of some Lincoln models from China to the United States until 2030. Ford rejected the allegations, saying a Michigan battery facility has created 1,700 jobs and that its arrangement with CATL is a limited technology-licensing deal. Experts told CNN that Chinese automakers could appear in U.S. showrooms within the next five to 10 years.

U.S. Transportation Secretary Sean Duffy warned Ford Motor Co. that its growing reliance on Chinese technology and manufacturing partnerships poses national security risks and threatens U.S. jobs. In a letter to CEO Jim Farley, Duffy cited Ford’s continued use of CATL-licensed battery technology in Michigan, a joint venture with Geely in Spain, reported talks with BYD on hybrid components, and delayed plans to bring Lincoln models back to U.S. production that he said could extend until 2030. Ford shares fell 4.1%.

Houthi forces attacked civilian and economic facilities in southern Saudi Arabia, wounding 73 people. Saudi Arabia’s Energy Ministry said fires broke out at several oil facilities and utilities, temporarily suspending operations. The incident fueled supply concerns, pushing Brent crude up 1.2% to $97.40.

Brent crude rose about 8% last week, hovering near $95 a barrel as escalating U.S.-Iran tensions fueled worries about potential supply disruptions through the Strait of Hormuz. India’s foreign-exchange reserves climbed to a record $740.8 billion as of August 28, giving the central bank a larger buffer to manage currency swings. In the U.S., August nonfarm payrolls increased by 1,62,000, keeping uncertainty around the Federal Reserve’s policy outlook in focus.

U.S. Treasury Secretary Scott Bessent said Washington is carrying out a large-scale economic isolation effort dubbed “Operation Economic Outcast” aimed at tightly blockading Iran. He said about 30 million barrels of Iranian crude are unable to be exported and cannot be replenished through new shipments. The Iranian rial has fallen more than 60% since March, inflation has climbed above 80%, and the IMF projects the economy will contract 6.1% this year. Oil flows through the Strait of Hormuz have fallen to about 18 million barrels a day, down from pre-war levels.

US Central Command said it struck three Iranian crude oil carriers after the Islamic Revolutionary Guard Corps launched ballistic missiles toward two US Navy warships. CENTCOM said the strikes permanently disabled M/T Downy near Kharg Island and M/T Stark 1 near Jask. It also said M/T Kylo was destroyed in the Gulf of Oman, and no losses have been reported.