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OpenAI has won a $200 million contract for a pilot program aimed at helping the US Defense Department determine how it could use artificial intelligence for a range of administrative and security tasks.

The one-year contract, which the Defense Department disclosed Monday, is the latest push by the ChatGPT-maker to sell its technology to the US government.

In a blog post Monday, OpenAI said the contract is the company’s first project under a new entity it’s calling OpenAI for Government.Tonight, I introduced legislation to stop Trump from from leading us into an illegal war with Iran.

Another war in the Middle East could cost countless lives, waste trillions more dollars, and lead to even more deaths, more conflict, and more displacement. pic.twitter.com/CchHlSnLZy

— Bernie Sanders (@SenSanders) June 17, 2025

Russ Mould, investment director at AJ Bell, warned on Monday that there was a risk markets were underpricing “the risk of a major conflagration in the Middle East,” particularly when it comes to the energy market.

In a Monday morning note, David Roche, a strategist at Quantum Strategy, warned that the conflict between Israel and Iran “will last longer than the Israeli lightning-strikes that the market is used to.”

Torbjorn Soltvedtp, principal Middle East analyst at Verisk Maplecroft, agreed, saying an escalation remained of “huge concern.”

Oil advanced after President Donald Trump called for the evacuation of Tehran as Israel vowed more strikes, keeping the market on edge about a potential escalation that could disrupt crude supply.

West Texas Intermediate was above $73 a barrel after climbing as much as 2.7% earlier. Futures swung between gains and losses on Monday in an $8 range before closing lower on signs Iran was seeking to deescalate the conflict sparked by Israel’s attacks on nuclear sites last week.

So far, however, Iran’s crude-exporting infrastructure has been spared and there are no signs that Tehran is seeking to escalate hostilities by blocking the Strait of Hormuz. Middle East producers ship about a fifth of the world’s daily output through the narrow waterway.

The United States is reinforcing its military presence in the Middle East to enhance its “defensive posture,” Pentagon Chief Pete Hegseth said Monday, as arch-rivals Iran and Israel ramp up their deadly conflict.

“Over the weekend, I directed the deployment of additional capabilities to the United States Central Command Area of Responsibility,” Hegseth posted on X. “Protecting US forces is our top priority and these deployments are intended to enhance our defensive posture in the region.”

Masoud Pezeshkian, President, Iran, spoke to Oman’s sultan and Turkish President about the ongoing conflict with Israel.

Iranian President told Turkish President that Iran did not start the war and do not wish to escalate but Iran will respond to any and all aggression.

Iranian minister of foreign affairs spoke to Japan’s minister of foreign affairs.

Asia-Pacific markets traded mixed Tuesday, as investors hope the Israel-Iran conflict might remain contained with Tehran reportedly signaling readiness to negotiate.

Investors await the Bank of Japan’s policy verdict, with the BOJ expected to stand pat on interest rates at 0.5% in the face of an uncertain trade climate, as it concludes its two-day policy meeting later in the day.

Japan’s benchmark Nikkei 225 moved up 0.21% in early trade while the broader Topix index was flat.

In South Korea, the Kospi index added 0.29% while the small-cap Kosdaq inched down 0.17%.

US President Donald Trump is leaving the Group of Seven summit in Canada a day early due to the situation in the Middle East, the White House said on Monday.

The G7 has struggled to find unity over conflicts in Ukraine and between Israel and Iran as Trump overtly expressed support for Russian President Vladimir Putin and has imposed tariffs on many of the allies present.

“Much was accomplished, but because of what’s going on in the Middle East, President Trump will be leaving tonight after dinner with Heads of State,” Press Secretary Karoline Leavitt said on X.

Gold pushed higher in early Asia trading after US President Donald Trump called for the immediate evacuation of Tehran, boosting demand for havens as investors track hostilities between Israel and Iran.

Bullion rose as much as 0.4% to top $3,400 an ounce, following a 1.4% slide on Monday, which was the biggest daily decline in a month. Trump issued the call to empty the Iranian capital in a social-media post hours after he urged Iran’s leadership to sign a deal to limit its nuclear program.

The precious metal advanced by almost 4% last week as Israel opened its military campaign against Iran’s nuclear program, sparking fears of a region-wide conflict and adding fresh impetus to a rally driven by the threat to global economic growth from Trump’s aggressive tariff agenda. Prices — currently about $100 short of the record hit in April — are on pace for a sixth monthly gain, which would be the best such run in more than two decades.

“The ninth wave of combined drone and missile attacks has begun and will continue without interruption until dawn,” said the Revolutionary Guards’ spokesman, Ali Mohammad Naini, according to the official IRNA news agency.

The Dow Jones ended 300 points higher on Monday, while S&P 500 and Nasdaq also closed with gains of over a percent each, as oil prices fell on hopes that the conflict will remain limited to the two countries.

Some analysts, however, have warned against complacency.

Futures on Wall Street have declined on Tuesday morning Indian time after an uneasily positive session to start the truncated week.

The Dow futures are currently down 100 points, while the S&P 500 and Nasdaq futures are down 20 and 80 points respectively.

Good Morning.

Israel and Iran’s hostilities have entered the fifth day.

US futures are falling after an uneasily positive session on Monday.

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