Global markets and technology sectors saw significant developments on Monday, as OpenAI and Microsoft reworked their partnership to allow broader cloud distribution, China moved to block Meta Platforms’ planned acquisition of Manus, US officials weighed Iran’s latest proposal amid ongoing tensions, and oil prices surged on supply concerns linked to disruptions in the Strait of Hormuz.

Microsoft-OpenAI deal amendment

OpenAI and Microsoft unveiled a revised agreement that loosens long-standing exclusivity terms, granting the AI startup greater commercial flexibility while maintaining core elements of their collaboration.

At the center of the changes is the removal of Microsoft’s exclusive access to OpenAI’s models, allowing the startup to distribute its products across multiple cloud providers, including those operated by rivals.

“Microsoft remains OpenAI’s primary cloud partner, and OpenAI products will ship first on Azure, unless Microsoft cannot and chooses not to support the necessary capabilities. OpenAI can now serve all its products to customers across any cloud provider,” the companies said in a joint statement.

The agreement also revises intellectual property terms. “Microsoft will continue to have a license to OpenAI IP for models and products through 2032. Microsoft’s license will now be non-exclusive,” the statement said.

Financially, revenue share payments from OpenAI to Microsoft will continue through 2030 at the same percentage but, will now include an overall cap.

“Today, we are announcing an amended agreement to simplify our partnership and the way we work together, grounded in flexibility, certainty, and a focus on delivering the benefits of AI broadly,” the statement added.

The shift reflects evolving dynamics in the AI sector, where companies are balancing cooperation with competition as they scale advanced technologies.

China blocks Meta’s Manus deal

China has ordered Meta to unwind its $2 billion acquisition of Manus, in a move that underscores tightening oversight of strategic technology deals involving artificial intelligence.

The directive from the National Development and Reform Commission effectively halts what had been seen as a landmark cross-border transaction.

Authorities had launched a probe shortly after the deal was announced in December, citing concerns over illegal foreign investment and the potential transfer of sensitive technologies.

The regulator said it would “prohibit foreign investment in Manus in accordance with laws and regulations, and requires the parties involved to withdraw the acquisition transaction.”

The decision reflects growing concerns within China about technology leakage and signals stricter scrutiny for future deals involving high-growth AI startups.

Trump discusses Iran proposal

The White House said US officials are reviewing Iran’s latest proposal as geopolitical tensions continue to shape global markets.

Press Secretary Karoline Leavitt said President Donald Trump had met national security officials earlier in the day to discuss the matter.

“His red lines with respect to Iran have been made very, very clear,” she said, adding that Trump would address the issue “very soon.”

The comments come amid reports that Tehran proposed reopening the Strait of Hormuz in exchange for the US ending its blockade of Iranian ports, while deferring negotiations over its nuclear program.

However, the US has maintained that key conditions, including preventing Iran from obtaining a nuclear weapon, remain non-negotiable.

Oil prices surge on supply concerns

Oil markets reacted sharply to the geopolitical developments, with Brent crude rising more than 2% to around $108.10, extending gains from the previous week.

Prices have been driven higher by disruptions linked to the Iran conflict, which has significantly reduced traffic through the Strait of Hormuz.

“The lack of progress means the market is tightening every day, requiring oil prices to reprice at higher levels,” said Warren Patterson.

Shipping data showed minimal tanker movement in the region, while analysts pointed to a substantial supply shortfall.

“There’s little alternative to fill a roughly 13m b/d shortfall. In the short term, inventories help to fill the gap, whether commercial or strategic reserves,” Patterson added.

Goldman Sachs has revised its forecasts, expecting Brent crude to reach $90 per barrel in the fourth quarter, while warning that sustained supply disruptions may push prices higher.

The ongoing standoff continues to fuel uncertainty, with energy markets closely tied to the outcome of geopolitical negotiations.