WTI crude jumped nearly 2% at the open to $84.29/bbl; Brent rose 1.7% to $89.43/bbl. US forces struck an island in southern Iran in the early hours of Beijing time; Iran struck a US military base.

Barclays says AI model companies pay roughly $35–40 of every $100 in revenue as inference compute fees to the three major cloud providers — Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (GCP). Cloud vendors retain about $10–20 in operating profit from that, implying roughly 35–45% operating margins on compute fees. Barclays finds AI labs' paid inference margins jumped from low-double-digit levels in 2025 to about 50–65%+ in 2026, with adjusted gross margins up 30–50 percentage points YoY. Analysts say actual margins could be higher but expect them to gradually retreat as frontier-model competition intensifies and compute supply expands.

The Israel Defense Forces said it killed two members of Hamas' Nukhba commando unit, Yasser Abu Khair and Muhammad Din. The IDF said the pair had plotted attacks on IDF personnel, helped restore the group's operational capability and had systematically violated the ceasefire.