Evening Digest: US-Iran tensions rise, Anthropic to buy AMD chips

Global markets remained focused on four major developments on Wednesday, as the US and Iran signaled no immediate return to negotiations amid escalating military action. 

AMD and Anthropic reportedly reached a multibillion-dollar AI infrastructure agreement centered on next-generation chips.

Gold climbed to a two-week high as a weaker dollar offset concerns over higher oil prices.

Meanwhile, crude oil approached a six-week high as geopolitical tensions and shipping disruptions intensified supply concerns.

US-Iran tensions escalate as diplomacy stalls

The conflict between the United States and Iran intensified for a second consecutive week, with both sides indicating they were not ready to return to negotiations.

US President Donald Trump warned that Iran would face significant consequences following the deaths of four US troops over the past week.

He also said the US would target bridges or power plants if Iran attacked ships passing through the Strait of Hormuz.

Iran, however, showed little willingness to resume formal talks.

Following Interior Minister Eskandar Momeni's visit to Pakistan, one of the main mediators in the conflict, Iranian officials said only an exchange of messages remained possible.

Tehran maintained that the previous interim peace agreement had been violated and accused the opposing side of failing to honor it.

The conflict expanded geographically as US forces carried out strikes near Tabriz in northwestern Iran, while Iranian media reported additional attacks in western Iran.

AMD and Anthropic reportedly strike multibillion-dollar AI infrastructure deal

Advanced Micro Devices and Anthropic have reportedly agreed to a deal covering tens of billions of dollars' worth of AI servers, according to a Wall Street Journal report.

Under the reported agreement, Anthropic will purchase up to 2 gigawatts of AMD's next-generation Instinct MI450 chips beginning in the first half of 2027.

AMD will also invest up to $5 billion in Anthropic, subject to deployment milestones being achieved.

According to the report, Anthropic will deploy some of the chips in its own data centers while leasing additional computing capacity through cloud providers and neocloud operators. The companies are also working together to identify suitable locations for deploying the new AI infrastructure.

The partnership also includes an engineering collaboration under which Anthropic's Claude AI models will be used to improve AMD's chip technology.

The report also said AMD is discussing providing a financial backstop for Anthropic's future data center leases.

The agreement comes as AMD continues efforts to expand its position in AI accelerators while competing with Nvidia.

Gold climbs to two-week high as weaker dollar offsets oil concerns

Gold prices rose sharply on Wednesday, reaching their highest level in two weeks as a weaker US dollar and technical buying supported demand for the precious metal.

Spot gold gained 1.4% to $4,133.51 an ounce after earlier touching $4,165.87, its highest level since July 7. US gold futures settled 1.55% higher at $4,139.60.

The softer dollar made gold more affordable for overseas buyers, while investors also continued to monitor developments in the Middle East and awaited next week's Federal Reserve policy meeting.

Markets continue to expect the Federal Reserve to keep interest rates unchanged for the remainder of 2026, although traders are increasingly pricing in the possibility of future rate increases.

Oil nears six-week high on Middle East conflict and shipping risks

Oil prices climbed toward six-week highs as military tensions in the Middle East and threats to commercial shipping heightened concerns over global crude supplies.

Brent crude rose to around $94.40 a barrel after earlier reaching $95.47, while West Texas Intermediate crude advanced to about $87.10. Both benchmarks touched their highest levels since June 11.

The latest gains followed the eleventh consecutive night of US strikes on Iran and renewed threats by the Iran-backed Houthi militia to target vessels carrying Saudi oil through the Bab el-Mandeb Strait.

Several oil tankers transporting Saudi crude to Asia reversed course in the Red Sea, while additional vessels also altered their routes as shipping risks increased.

The widening conflict has increased concerns over crude availability, with the Brent three-month timespread widening significantly, reflecting tighter near-term supply conditions.

Meanwhile, US government data showed crude inventories rose by 2 million barrels to 411.7 million barrels last week as refinery activity slowed and imports increased.