Oil Spikes, Tech Wobbles, and Justice Served: Friday's Rundown

On this edition of The Morning Rundown, Maya and David break down a fast-moving day of global and domestic news, starting with oil prices surging past $100 a barrel following Houthi strikes on Saudi tankers. They examine reports that Iran sent Revolutionary Guard commanders to Yemen, growing signals from the Trump administration about a possible move against Iran, and how the U.S.-Saudi nuclear deal is now stalled over normalization with Israel.

The hosts then shift to markets and technology, unpacking Intel's strongest revenue growth in nearly fifteen years, concerns over Alphabet's negative cash flow, and Microsoft's push toward cheaper in-house AI models. They discuss how these earnings are colliding with rising oil prices to rattle Wall Street. The episode closes with two major justice stories: the sentencing of Vance Boelter for the killing of Minnesota lawmaker Melissa Hortman and her husband, and a police shooting in Madison, Wisconsin that has prompted calls for transparency from the governor.

• Oil tops $100 a barrel amid Houthi attacks and rising U.S.-Iran tensions
• Iran's deployment of Revolutionary Guard commanders raises stakes in the region
• Saudi nuclear deal talks stall over Israel normalization demands
• Intel posts major earnings growth while Alphabet's AI spending worries investors
• Microsoft's cost-cutting AI strategy signals shifting reliance on OpenAI
• Vance Boelter sentenced to consecutive life terms in Hortman killing
• Madison police shooting sparks protests and demands for accountability

Tune in for a clear, concise rundown of the stories shaping today's headlines.

Transcript

0:13

[Maya] Morning, everybody. Welcome back to the morning rundown.[David] Morning,[David] Maya.

[David] Here's the headline: 0:18

[David] Oil just blew past a hundred bucks a barrel again.[Maya] Wait, already?[Maya] Okay,[Maya] so we've got Houthi strikes in the Red Sea and apparently Trump's getting ready to make some kind of move on Iran?[David] Yeah, that's a big story.[David] We'll get into what the White House is actually weighing.[Maya] And there's the Saudi nuclear deal now hanging in the balance, too.[David] Speaking of which,[David] tech earnings are a mess this week, too.[David] Intel's riding high,[David] but[David] But Alphabet's got investors nervous.[Maya] Oh, and Microsoft's trying to cut costs on AI right as Wall Street gets jumpy about $100 oil.[David] And later, some heavy news out of Minnesota.[David] The man who killed lawmaker Melissa Hortman got sentenced this week.[David] Wow.[Maya] Plus, a police shooting in Madison that's got the governor calling for answers.[David] Lots on deck.[David] Maya,[David] where do you want to start?

[Maya] Let's start where the world's watching: 1:01

[Maya] the Middle East.[Maya] Okay,[Maya] so I filled up my tank yesterday and about choked on the total.[Maya] Oil just blasted past $100 a barrel.[David] Yeah, and it's not just some random spike.[David] The New York Times tied it's stray Houthi attacks on Saudi tankers in the Red Sea today.[Maya] Whoa. A hundred dollars.[Maya] That's the number that shows up at the pump for every one of us, not just people trading oil futures.

[David] Right, and CNBC had a line on this that stuck with me: 1:25

[David] a stock market looking away can't dodge a $100 war.[David] WAR[Maya] That's pretty stark.

[David] It is; and here's what's got me: 1:32

[David] Trump isn't just watching this happen.[Maya] No?[David] No,[David] the Guardians reporting he says a decision on a massive attack against Iran is close; Reuters separately has him vowing punishment for the Houthis directly.[Maya] A massive attack is a big phrase to throw around.[David] It is; but the flip side is real,

[David] too: 1:49

[Maya] Hmm.[David] if the Houthis are hitting Saudi tankers and driving oil past a hundred dollars,[David] doing nothing has a price.[Maya] I mean every time this happens it's not the traders who eat it first,[Maya] it's whoever's filling up for their commute.[David] Right,[David] and you'd expect shippers to already be paying more just to insure tankers running the Red Sea.[David] That cost doesn't vanish-it gets passed down.[Maya] Fair enough; so why are the Houthis even doing this?[Maya] Where's the missile gear coming from?[David] That's the part that worries me more than the price at the pump,[David] honestly.[David] The New York Times is reporting Iran flew revolutionary commanders and missile gear to[Speaker 3] Yemen.[David] Gear to Yemen to the Houthis.[Maya] Wait,[Maya] actual commanders,[Maya] not just weapons?[David] That's the report—people,[David] not just hardware—which tells you this isn't the Houthis freelancing.[Maya] So when Trump talks tough on Iran directly it's less about Yemen and more about who's actually pulling the strings.

[David] Exactly: 2:36

[David] follow the money,[David] follow the missiles; it leads back to Tehran every time.[Maya] Okay,[Maya] that tracks.[Maya] So how Saudi Arabia fit into this?[Maya] I thought we were cozying up to them on nuclear stuff.[Maya] stuff.[David] We were.[David] The New York Times is now reporting that deal is in doubt.[David] Trump wants Saudi Arabia to normalize with Israel first before nuclear cooperation moves forward.[Maya] So he's using the deal as leverage.

[David] That's the read: 3:00

[David] tie the thing they want to the thing we want.[David] Not subtle,[David] but not new either.[Maya] Does Saudi Arabia even want that right now,[Maya] with oil at a hundred bucks and missiles flying?[David] That's the open question nobody's answering yet.[Maya] Hmm.[David] Riyadh's got its own tankers getting hit.[David] They might want us more engaged,[David] not less.[Maya] So basically everybody in the story wants something from everybody else and oil's paying the bill.[David] Pretty much.[David] Reuters already has oil dragging stocks down alongside some ugly tech earnings this week.[Maya] Tech earnings,[Maya] don't even get me started.[David] Oh, we're getting started,[David] trust me.[Maya] So if a $100 barrel is already spooking the market,[Maya] what happens when Silicon Valley's spending problem shows up on the same earnings call?[Maya] Speaking of jittery markets,[Maya] Intel's stock actually jumped today.[David] Oh yeah,[David] I hadn't seen that yet.[David] Kif Leswing at CNBC reported it's Intel's fastest revenue growth in almost fifteen years,[David] riding this AI boom.[Maya] Fifteen years.[Maya] Okay,[Maya] so somebody's actually cashing in,[Maya] which[David] Right, that's the split this earning season.[David] Some companies are printing money off AI, others are just burning cash on it.[Maya] brings us to Google's parent company.[David] Alphabet.[David] Reuters says their cash burn on AI spending is spooking investors right now.[Maya] Spooking how bad?[David] Barron's pulled the numbers.[David] Free cash flow went negative for the first time ever because they're pouring so much into AI infrastructure.[Maya] Okay,[Maya] help me out here.[Maya] Isn't that basically maxing out a credit card betting the payoff shows up later?[David] Pretty much.[David] You're betting future revenue covers the bill.[David] Problem is, investors want proof, not just the bet.[Maya] And Microsoft's playing it differently?[David] Yeah,[David] VentureBeat reported Microsoft rolled out its own in-house AI models,[David] and they're claiming it cuts costs up to 89% versus running on OpenAI's tech.[Maya] 89%?[Maya] If that's real,[Maya] that's massive.[David] If it holds, that's Microsoft saying they don't need to keep paying somebody else's toll booth.[Maya] Smart.[Maya] Build it yourself instead of renting it forever.[David] And Wall Street felt it all at once.[David] Reuters says stock slid as these earnings collided with...[David] It's collided with oil topping a hundred bucks and suddenly everybody's nervous about spending.[Maya] So it's not one bad headline, it's the whole market looking at the AI bill and going,[Maya] wait,[Maya] how big does this actually get?[David] Exactly.[David] Tesla dropped on the same worries per that same Reuters report.[Maya] I mean, I'm not saying AI's a bust,[Maya] I just think the market's finally asking these guys to show their work.[David] Which honestly is how it should work.[David] Let the ones with real returns win and let the rest get sorted out.[David] Sorted out by the market,[David] not a bailout.[Maya] Free market doing its actual job for once.[David] Doing exactly what it's supposed to.[Maya] Speaking of things getting sorted out,[Maya] there's a case that closed in a courtroom today,[Maya] and it's a heavy one.[David] Real consequences,[David] no ambiguity this time.[Maya] Shifting from boardrooms to courtrooms – big justice story out of Minnesota today.[David] Yeah, huge one.[Maya] Vance Boelter,[Maya] the man who killed State Representative Melissa Hortman and her husband Mark,[Maya] got sentenced Thursday.[Maya] CNN reports two life terms plus 40 years,[Maya] no parole.[David] She'd also served as a state's former House Speaker,[David] per AP News.[Maya] Right,[Maya] and consecutive sentences,[Maya] too,[Maya] not concurrent.[Maya] So he serves them back-to-[Maya] BACK TO BACK.[David] Which matters because it tells the next would be attacker there's no short cut back to freedom.[Maya] AP News says survivors and lawmakers spoke at the hearing.[Maya] They said Boelter tried to erase her legacy,[Maya] but only left behind fear and anger.[David] And Axios noted he actually "apologized" before the sentence came down.[Maya] A little late for that.[David] Yeah.[Maya] This whole case, going back to last June,[Maya] it's just a hard reminder of what political violence costs.[Maya] and costs. Real families,[Maya] real kids without a mom.[David] No parole means no more court dates for them at least.[David] That's something.[Maya] Shifting gears,[Maya] a police shooting in Madison,[Maya] Wisconsin isn't nearly as clean cut.[David] CBS News reports an officer shot and killed a man,[David] identified by the mayor as Corey Ruiz,[David] after Ruiz injured him with a knife while resisting arrest.[Maya] AP News says Ruiz was homeless,[Maya] which is part of what's fueling the anger on the ground.[Maya] That's already sparked protests,[Maya] and per AP News,[Maya] the governor is calling for transparency with an independent state investigation now underway.[David] I think we've got to be careful here.[David] An officer got hurt with a knife.[David] That part's not in dispute.[Maya] Right,[Maya] and the full footage hasn't all come out yet either.[Maya] I'm not ready to assume wrongdoing before the facts are in.[Maya] Jumping ahead of an investigation doesn't help anyone.[David] Agreed. Let it play out.[David] That's how it's supposed to work.[Maya] We'll keep watching Madison as more comes out.[Maya] So that's the rundown. Oil past $100, Iran playing a dangerous game with the Houthis, and Alphabet basically maxing out the credit card on AI.[David] Yeah, that Alphabet bet is one to watch.[David] Intel's cashing in on the same boom though,[David] so it's not all bad news on tech.[Maya] Right. Bottom line, energy and AI spending are colliding and your gas prices might feel it first.[David] Follow the money,[David] folks.[Maya] There it is.[Maya] All right. If you like today's show,[Maya] subscribe and leave us a review.[Maya] It actually helps.[David] Thanks for starting your morning with us.[Maya] We'll see you tomorrow.