Iran conflict drives oil prices up; US to expand AI chip export controls globally.

Trump: Personal Involvement Needed in Iran Succession Planning

Trump's Stance on Iran Leadership

In an interview with AXIOS, President Trump emphasized the necessity of his personal involvement in selecting Iran's next leader, similar to his approach in Venezuela. He acknowledged that Mojtaba Khamenei, the son of the assassinated Supreme Leader, is the most likely successor but deemed this outcome unacceptable.

Trump stated, "They are wasting time. Khamenei's son is insignificant. I must be involved in the appointment process as I did with Delcy Rodriguez in Venezuela." He expressed his refusal to accept any new Iranian leader who would continue Khamenei's policies, warning that it could lead the U.S. back into conflict within five years.

U.S. House Votes Against Limiting Trump's War Powers

On March 5, the U.S. House of Representatives voted 219 to 212 against a resolution requiring presidential authorization for military strikes against Iran. This decision allows the Trump administration to continue its military actions in Iran, following a similar rejection in the Senate.

Iran's Foreign Minister on Ground Invasion Preparedness

Iran's Foreign Minister, Amir-Abdollahian, stated that Iran is ready to respond to a potential U.S. ground invasion, dismissing any negotiations with the U.S. He asserted, "No, we are waiting for them to come," indicating confidence in Iran's ability to counter such actions.

U.S. Domestic Developments

Oil Price Control Options Under Consideration

U.S. Interior Secretary Doug Burgum mentioned that the Trump administration is evaluating various options to address rising oil and gasoline prices amid the Iran conflict. Discussions have included potential immediate actions and longer-term strategies, including the release of oil from the U.S. Strategic Petroleum Reserve.

Saudi Oil Prices Surge

Saudi Aramco has raised the official selling price of its Arab Light crude oil to Asia, marking the largest increase since August 2022. The price is set at a premium of $2.50 per barrel over the Oman/Dubai average.

Market Reactions

U.S. Stock Market Decline

On Thursday, U.S. stock indices fell collectively, with the Dow Jones down 1.61%, the Nasdaq down 0.26%, and the S&P 500 down 0.57%.

Notable Stock Movements

• Technology Stocks: Broadcom rose nearly 5%, while Microsoft and Amazon saw slight increases. However, Meta and AMD dropped over 1%.
• Chinese Stocks: Bilibili fell over 7%, while NIO and Alibaba also experienced declines.

AI and Technology Updates

OpenAI Launches GPT-5.4

OpenAI has officially launched GPT-5.4, claiming it to be the most factual and efficient model to date, with improved context retention and user interaction capabilities.

Nvidia and AI Chip Export Regulations

Reports indicate that the U.S. plans to extend AI chip export controls globally, requiring companies like Nvidia and AMD to obtain licenses for exports.

Earnings Reports

Costco and JD.com Perform Well

Costco reported a Q2 profit exceeding expectations, with revenues of $69.6 billion, while JD.com also saw a 1.5% increase in net revenue.

Bilibili's Impressive Profit Growth

Bilibili announced a net profit of 514 million yuan for Q4, marking a 478% year-on-year increase.

Conclusion

The geopolitical tensions surrounding Iran and the U.S. response continue to influence market dynamics and domestic policies. As the situation evolves, the implications for oil prices and stock markets remain significant.