Daily Buzz: 12 March 2026

Oil Prices Whipsawed by Middle East Developments

Global oil prices slipped below US$90 a barrel after the International Energy Agency's 32 member nations announced the release of 400 million barrels of crude from emergency stockpiles, the biggest-ever release. It is equivalent to about a third of aggregate stockpiles and is aimed at easing the loss of some 15 million barrels of crude a day from an effective blockade of the Strait of Hormuz. Japan, which relies on oil tanker passage through the strait for about 70 percent of its oil imports, said it would "act first" to release about 80 million barrels.

Iran's military said on Wednesday said any ships belonging to the US, Israel or their allies will be targeted if they try to pass through the vital waterway, which normally carries about 20 percent of global oil. Oil prices rose back above US$90 following reports that three ships near the strait, including a Thai bulk carrier that caught fire, were struck by unknown projectiles. Oman said it was working to contain fire in fuel tanks at the port in Salalah following an Iranian drone attack. Benchmark Brent crude was trading at US$93 late in New York. Wall Street stock markets closed flat to lower, and early futures pointing to tomorrow's open were down.

Israel and the US continued air strikes on Iran. Israel said the war, now in its 12th day, will last as "long as necessary." US President Trump indicated earlier the war won't end until the US can be absolutely certain that Iran's long-term capability to make nuclear weapons has been obliterated. The Guardian reported that the Trump administration is considering the deployment of special forces into Iran to secure stockpiles of highly enriched uranium that experts say could be used to make at least 10 nuclear warheads. Aerial bombing alone may not achieve that goal. US Secretary of State Marco Rubio reportedly told some in Congress that "people are going to have to go and get it." The International Atomic Energy Agency said this week that it believes at least 200 kilograms of highly enriched uranium in Iran are stockpiled deep in underground tunnels.

California-based Planet Labs said is temporarily delaying access to ‌its satellite imagery of the Middle East by 14 days to prevent US adversaries from using it. The company normally sends images from its large fleet of satellites to governments, companies and the media on a real-time basis. The BBC said the restrictions will hurt its ability to verify news reports emanating from the war.

Top Business

Cathay Pacific Airways 9.5 Percent Rise in 2025 Profit

Hong Kong flagship carrier Cathay Pacific Airways said group profit for 2025, including airlines, subsidiaries and associated services companies, rose 9.5 percent to HK$10.8 billion (US$1.4 billion) on increased capacity, solid passenger load factors and resilient cargo demand. Revenue rose 12 percent to HK$116.8 billion. The airline said fuel surcharges may have to rise soon in response to higher oil prices triggered by the Middle East war. The airline said passenger number rose 27 percent to 28 million, with revenue rising 16 percent and a load factor of 85 percent. Cargo revenue rose 1.2 percent. The company reported it was operating a fleet of 237 aircraft at the end of the year and said it expects to expand passenger capacity by around 10 percent this year with the delivery of eight new narrowbody aircraft.

Tencent Cloud Raises AI Model Prices

Tencent Cloud is raising prices for several AI models, with some increases exceeding 400 percent, as the industry shifts from free testing to commercial deployment. The company said public testing that has included models such as GLM 5, MiniMax 2.5 and Kimi 2.5 will end the free trial phase on March 13 and move to paid services based on token usage. Tencent is also raising prices for its HY series models up to more than 460 percent. The price adjustments come as demand for generative AI models surges and computing costs rise across the industry. Several other developers have also raised prices. OpenAI recently increased the cost of its GPT-5.4 model to US$2.50 per million input tokens and US$15 per million output tokens. Chinese AI developer Zhipu AI has also raised fees for some services.

Meta Snaps Up Moltbook, a Novelty AI Startup

Meta, which operates Facebook and Instagram, bought Moltbook, the social media site where AI agents interact socially with one another autonomously. Moltbook's Reddit-style chat format is open only to participation by AI agents, not humans. It was built by tech engineer Matt Schlicht originally to allow agents of OpenClaw, a separate startup, to chat with one another, and made headlines when what some of them had to say reflected badly on humans. Humans can observe what's said but can't participate in the "conversations." What Meta paid for the acquisition hasn't been disclosed.

Nvidia Outlines Costs, Needs of AI Expansion

In a rare standalone blog post, Nvidia CEO Jensen Huang likened the buildout of artificial intelligence to early 20th-century electrification, requiring trillions of dollars in energy, chips and data-center infrastructure. Unlike traditional software, AI generates output in real time, requiring purpose-built facilities rather than relying on existing data centers. The expansion, he said, will create large numbers of jobs and required skilled workers now in short supply. He said supply of energy is a key constraint on AI growth. He also said open-source models like DeepSeek-R1 are accelerating adoption of AI and increasing demand for underlying infrastructure. Despite hundreds of billions already invested in the technology, "trillions of dollars of infrastructure still need to be built," he said.

Economy & Markets

Foxconn Industrial Internet Profit Surges

Shanghai-listed Foxconn Industrial Internet said fourth-quarter net profit jumped 58 percent from a year earlier to 12.8 billion yuan (US$1.9 billion) on a 73 percent jump in revenue to 299 billion yuan, led by cloud computing. For the full year, revenue rose 48 percent to 903 billion yuan, with net climbing nearly 52 percent to 35.3 billion yuan. Revenue from the cloud computing division surged 89 percent, accounting for more than 60 percent of total sales. AI server demand from cloud service providers has increased sharply amid rapid growth in products tied to AI chips and generative AI expansion across industries.

Residential Rents Declining in Major Chinese Cities

Residential rents in China are dropping in major cities as more subsidized housing comes on the market, Yicai reported. In January, the average rents for central apartments in Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Nanjing, Chengdu, and Wuhan fell 2.5 percent from a year earlier, according to China Real Estate Information Corp. Some local governments have begun buying unsold houses to convert to affordable housing, and construction of new affordable housing projects continues, with 199,000 new units expected this year.

China Savings Bond Issues Prove Popular With Public

The first certificated savings bonds issued by China's finance ministry this year sold out quickly in Beijing, with the five-year notes proving the most popular, as investors seek higher returns amid low deposit rates, Yicai Global reported. The tranches of three- and five-year bonds, valued at 15 billion yuan (US$2.2 billion) each, will be available through March 19. The three-year bonds offer a 1.63 percent coupon; the five-year bonds carry a 1.7 percent coupon. Certificated savings bonds can be purchased only at bank counters.

Corporate

Huawei Says 47 Million Devices Using HarmonyOS

Huawei said more than 47 million devices are now powered by its HarmonyOS system, with more than 350,000 apps and services available. HarmonyOS is a next-generation operating system for smart phones, TVs and watches, and for tablets and personal computers. The latest version, HarmonyOS 6, was released last October. Huawei launched a beta version of it OpenClaw on Wednesday, which is easily used and controlled through HarmonyOS devices.

BMW to Recall Vehicles in China

BMW will recall 147,830 vehicles in China over a "manufacturing issue with ‌the starter motor," China's State Administration for Market Regulation announced on Wednesday. The flaw could cause difficulty starting the vehicle or, in extreme cases, pose a fire risk, the regulator said. The recall will cover some imported BMW 2 Series, 4 Series, 5 Series, 6 Series, 7 Series, X4, X5, X6, and Z4 vehicles manufactured between ‌July 31, 2020 and December 22, 2022.

Honor Releases Magic V6 With Enhanced AI Functions

Smartphone brand Honor launched the Magic V6, its first product under its "augmented human intelligence" strategy. The Magic is a foldable phone offering enhanced AI functions covering meetings, finance, business trips, videos, games and connectivity. The company said it will integrate AI agent OpenClaw into its phones and tablets. The new smartphone model will begin sales on Friday, with a starting price of 8,999 yuan (US$1,310). Honor said it plans to launch its first robot phone in the second half of the year.

Porsche Profits Plunge as China Market Cools

German luxury carmaker Porsche reported a 93 percent drop in 2025 operating profit to 413 million euros (US$448.2 million). Revenue declined 9.5 percent to 36.27 billion euros, as global deliveries slipped 10 percent. The company said a primary concern remains a cooling auto market in mainland China, where intense price competition has pressured margins on luxury vehicles.

Microsoft Backs Anthropic in Legal Battle With Pentagon

Microsoft threw its weight behind Anthropic's legal challenge to overturn the US Department of Defense's designation of it as a "supply chain risk." The Pentagon move came after ending contracts with Anthropic, developer of the Claude AI systems, in a dispute over whether the technology could be used for mass surveillance of Americans and for autonomous weaponry. The Trump administration subsequently banned Anthropic from all government contracts. Microsoft said in a court filing that it and other technology companies would need to "act immediately to alter existing product and contract configurations" used by the Pentagon, potentially hampering US military actions in the Middle East. The designation "supply chain risk" is normally used for foreign adversaries. Anthropic Rival OpenAI has jumped in to take over the Pentagon contracts.