Markets feel a sense of déjà vu as trade with Iran tightens again

Hello, my name is Hui Jie from Singapore. Welcome to another edition of CNBC’s Daily Open.

Is it too late to say “Here we go again”?

Less than a week after the United States and Iran signed a memorandum of understanding aimed at ending conflict in the Middle East, tensions are rising again as the situation in the Strait of Hormuz becomes uncertain.

Meanwhile, British Prime Minister Keir Starmer is poised to resign after his rival Andy Burnham won a decisive election victory, according to media reports.

Iran claimed it had re-blocked the Strait of Hormuz and that US President Donald Trump had begun threatening to attack the country “even more severely” after the US failed to fulfill its promise to stop fighting in Lebanon.

The Iranian government reportedly closed a vital waterway over the weekend, citing Israel’s attack on Lebanon, reneging on the terms set out in the memorandum of understanding. President Trump on Sunday threatened a new attack on Iran unless Iranian leaders “immediately stop their highly paid proxies in Lebanon from stirring up trouble.”

Last week, CNN reported that Israeli Prime Minister Benjamin Netanyahu said Tel Aviv would not be bound by the deal reached between the United States and Iran. This means that parties not participating in the negotiations may actually have the power to break the agreement.

His remarks came as Vice President J.D. Vance met with Iranian officials ahead of the first round of negotiations in Switzerland after negotiations were earlier called off.

According to Reuters, Vance said progress had been made towards ending the violence in Lebanon, but added that the two countries did not seek a joint photo opportunity at the meeting and Iranian Foreign Minister Abbas Araqchi did not interact publicly with Vance before his remarks.

Crude oil prices rose against the backdrop of international indicators brent Breaking through the $80 mark and reaching $80.84, while the U.S. west texas intermediate Crude oil futures rose more than 2% to $78.5.

U.S. stock futures fell, with futures prices for all major indexes falling on Sunday. However, markets in Asia started the day higher, with Japan Nikkei Stock Average Leading in profits.

British Prime Minister Keir Starmer reportedly plans to resign after his rival Andy Burnham won a decisive victory in a special election to the British Parliament, raising the possibility of a leadership contest. This follows Labor’s crushing defeat in local elections.

Media reports suggest Mr Starmer could resign as early as Monday, but there has been no formal announcement from Downing Street so far.

Later this week, investors will await MSCI’s annual market classification review for South Korea and Indonesia on Tuesday.

The South Korean government is aiming for inclusion on MSCI’s developed market watchlist, which is a prerequisite for eventual upward reclassification. On the other hand, Jakarta prefers not to move, and there is a risk that index providers will classify Jakarta from an emerging market to a frontier market.

MSCI highlighted “investability concerns” in Indonesia in its Global Market Accessibility Review last week.

Pixar’s ‘Toy Story 5’ Lasso hits $160 million opening weekend, the biggest in series history

Disney’s Toy Story series is still a hot topic.

The fifth film in the Pixar film series grossed $160 million during its opening weekend, making it the highest-grossing film in series history. Overseas, “Toy Story 5” grossed $152 million, bringing its three-day worldwide box office gross to an estimated $312 million.

The film series has grossed more than $3 billion at the global box office since the first film was released in 1995, with two films each grossing more than $1 billion worldwide.

— Sarah Witten