Apple is testing memory chips made by China’s ChangXin Memory Technologies (CXMT) across products including iPhones and MacBooks, the Wall Street Journal reported on Sunday, as the artificial intelligence boom intensifies competition for memory components and puts pressure on global supplies.

Apple has held preliminary discussions with CXMT, China’s largest memory-chip maker by market value, about potentially sourcing components for some devices sold in China, according to people familiar with the matter cited by the newspaper.

The testing represents a potentially significant development for both companies. For Apple, qualifying an additional memory supplier could help ease component shortages and reduce pressure from tight global memory markets. For CXMT, supplying components to one of the world’s largest technology companies would provide a major commercial endorsement as the Chinese chipmaker seeks to expand beyond its domestic market.

The move comes as the rapid expansion of AI infrastructure has transformed the global memory-chip market. Data centers powering generative AI systems require large quantities of high-performance memory, particularly high-bandwidth memory and advanced DRAM, drawing production capacity and investment toward AI-related applications.

That shift has intensified competition for memory components used in consumer electronics, potentially increasing costs and creating supply constraints for smartphone and PC manufacturers. Apple’s reported testing of CXMT chips could therefore give the company another source of supply at a time when memory manufacturers are allocating increasing resources to AI-related demand.

CXMT is China’s largest producer of DRAM memory and has been expanding its manufacturing capabilities as Beijing pushes for greater self-sufficiency in semiconductors. The company is also seeking to close the technological gap with established memory producers such as Samsung Electronics, SK Hynix and Micron Technology.

CXMT is considering building a second memory-chip plant in Beijing as it seeks to increase production capacity, according to a Reuters report.

The potential Apple relationship would also illustrate the increasingly complex intersection between China’s semiconductor ambitions and the global technology supply chain. U.S. restrictions have limited China’s access to advanced semiconductor manufacturing equipment, but Chinese chipmakers have continued to expand production of memory and other components that do not depend on the most advanced manufacturing technologies.

CXMT’s progress has already begun to reach international consumer electronics markets. Laptop manufacturers HP and Acer have started using CXMT memory chips in devices sold outside the United States, according to the Wall Street Journal, as manufacturers seek alternative supplies amid tight memory markets.

For Apple, the reported discussions appear focused initially on products sold in China rather than a broad shift in its global component sourcing. That distinction is important because any expansion of CXMT’s role in Apple’s international supply chain could face additional regulatory and geopolitical scrutiny.

Apple has been working to diversify its manufacturing and supply chains beyond China, particularly amid escalating U.S.-China technology tensions. At the same time, China remains an important production base and consumer market for the company, making access to competitive local component suppliers strategically valuable.

The development also highlights how the AI boom is reshaping the economics of the broader electronics industry. While much of the attention has focused on shortages of advanced AI chips, the surge in data-center construction is increasing demand across the semiconductor supply chain, including memory.

If CXMT succeeds in qualifying its products for Apple’s requirements, the development could mark a step toward greater acceptance of Chinese memory technology among major global electronics manufacturers. It could also increase competitive pressure on established memory suppliers as Chinese producers expand capacity and seek to win customers beyond China.

For now, Apple’s testing does not necessarily mean CXMT chips will enter mass production in iPhones or MacBooks. Semiconductor components must pass extensive reliability, performance and quality qualification before becoming part of large-scale commercial products.

But even the testing process matters, as it suggests that Apple is actively examining additional sources of memory supply due to the AI-driven demand surge that is increasingly reshaping the global semiconductor market, creating incentives for device makers to broaden their supplier base.

Brent holds above $83 as Tehran demands U.S. concessions before reopening strategic waterway; softer jobs data cuts September Fed hike bets to 44%

Oil prices were little changed on Monday as optimism over efforts to reopen the Strait of Hormuz was tempered by Iran’s insistence that Washington meet a series of demands before the strategically vital waterway can fully reopen.

Brent crude futures were up 19 cents at $83.74 a barrel by 0807 GMT, while U.S. West Texas Intermediate crude futures gained 3 cents to $78.21. Both benchmarks fell more than 7% last week as investors bet that Iran and Oman were nearing an arrangement that could restore shipping through the strait.

The price action shows the market is balancing two competing forces. A credible reopening would remove a substantial geopolitical risk premium from crude, while any breakdown in diplomacy or fresh attacks on energy infrastructure could quickly reverse last week’s decline.

“Any major progress towards restoring unrestricted shipping could exert downward pressure on oil prices, while a breakdown in negotiations or renewed supply disruptions could quickly revive the geopolitical risk premium,” said Sugandha Sachdeva, founder of New Delhi-based SS WealthStreet.

The Strait of Hormuz is one of the world’s most important energy chokepoints. Before the Middle East conflict that began in late February, about a quarter of global seaborne oil trade and roughly a fifth of global liquefied natural gas shipments passed through the waterway.

Iran said Sunday that discussions with Oman had reached their final stages, but Tehran made clear that an agreement on transit arrangements would not by itself reopen the strait.

Iranian Foreign Minister Abbas Araghchi said Iran and the United States are not currently engaged in negotiations and that Tehran would not resume talks while Washington continues to violate an interim agreement reached in June.

“There is no possibility of restarting negotiations” while the U.S. continues violating the June memorandum of understanding, Araghchi said, according to Tasnim News Agency. He added that Iran would require compensation for what it described as U.S. “violations.”

“Intermediaries are still making efforts to find ways to resume negotiations,” Araghchi said.

Tehran has presented a sweeping list of conditions for reopening the waterway, including an end to the U.S. naval blockade and sanctions, the withdrawal of American troops from the region, payment of war reparations and the release of frozen Iranian assets. Oman, which has been mediating between the sides, said its discussions with Tehran were progressing in a “positive and constructive atmosphere”. Muscat also called for an end to repeated attacks on vessels transiting the strait to create room for diplomacy.

The distinction between an agreement on transit routes and a full reopening of Hormuz is important for energy markets. Even if Iran and Oman finalize arrangements governing navigation, the broader military confrontation could continue to constrain shipping and keep insurance and freight costs elevated.

Maritime Pressure Remains High

The risk to energy supplies remains acute.

U.S. Central Command said American forces redirected another 20 commercial vessels away from Iranian ports last week under a naval blockade, taking the total number of vessels redirected since the operation began to 55 as of Sunday, up from 35 on Aug. 2.

U.S. forces have also disabled two ships and boarded two others to enforce compliance, according to the command.

The growing number of vessel diversions highlights the gap between diplomatic optimism and conditions at sea. Shipping companies continue to face uncertainty over whether vessels can safely use the waterway or alternative routes.

Iranian strikes in and around Hormuz, together with attacks by Iran-aligned Houthi forces in the Red Sea, have kept pressure on commercial shipping.

The United Arab Emirates said Saturday that Iran had launched a missile at an oil tanker owned by Abu Dhabi National Oil Company while it was attempting to transit the Strait of Hormuz early Saturday.

The Iran-aligned Houthis separately claimed responsibility Sunday for an attack on an oil refinery in Saudi Arabia and equipment in Yemen’s Red Sea port city of al-Makha. The Houthis had also attacked Saudi Aramco’s Jazan refinery on Sunday, according to reports, adding another potential threat to regional energy infrastructure.

The attacks came two days after Saudi Arabia signed a defense pact with Turkey and Pakistan as regional tensions intensified. ADNOC said Friday that 15 of its vessels had been attacked while transiting the Strait of Hormuz since the beginning of the conflict.

The cumulative disruptions mean that even a diplomatic breakthrough could take time to translate into normal shipping patterns. Tankers, insurers and commodity traders are likely to require evidence that the route is consistently safe before fully restoring previous traffic levels.

U.S. President Donald Trump, who expressed confidence last week that Washington and Tehran could reach an agreement, indicated that his administration was prepared to allow economic pressure on Iran to intensify rather than immediately launch another military offensive.

“We are low keying it,” Trump told Axios. “We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money.”

Trump also posted a chart on Truth Social showing the decline in the Iranian rial’s value since 2025, accompanied by the words “Iran has no money” and “currency is trash.”

The comments suggest that Washington is seeking to use economic pressure as leverage while leaving room for diplomacy, although Tehran’s demands remain substantially broader than the conditions Washington has publicly indicated it is prepared to accept.

Treasury Yields Await Inflation Test

U.S. Treasury yields edged lower at the start of the week as investors turned their attention to a packed economic calendar, with Wednesday’s consumer inflation report likely to be the most important release for Federal Reserve policy expectations.

At 3:58 a.m. ET, the 10-year Treasury yield was down just over 1 basis point, while the 30-year yield also declined about 1 basis point. The two-year Treasury yield was little changed.

A basis point is one-hundredth of a percentage point, and bond yields move inversely to prices.

The shift in rate expectations follows Friday’s unexpectedly weak U.S. employment report. The economy shed jobs in July, while employment gains for the previous two months were revised sharply lower.

The data reduced expectations that the Federal Reserve would raise interest rates at its September meeting. Deutsche Bank analysts said the jobs report had “reduced the urgency for further Fed tightening in the near term.”

Markets now price roughly a 44% probability of a September rate increase, down sharply from 67% a week earlier, according to CME Group’s FedWatch tool.

The next major test will be July’s core consumer price index, due Wednesday at 8:30 a.m. ET. Core CPI excludes food and energy and will therefore provide a cleaner indication of underlying inflation pressures.

The inflation report could “go a long way towards tipping the balance for September FOMC pricing,” Deutsche analysts said.

The producer price index follows on Thursday, while weekly initial jobless claims and July retail sales are due Friday. The preliminary University of Michigan consumer sentiment survey will also provide a fresh reading on household expectations.

For markets, the policy dilemma is becoming sharper. A weak labor market gives the Fed more reason to ease policy, but a renewed rise in inflation could force investors to price out rate cuts or even revive expectations of another hike.

Dollar Remains Under Pressure

The U.S. dollar steadied near a two-month low on Monday after the weak employment report reinforced expectations that the Federal Reserve may have less need to tighten monetary policy.

“The labor market data was a negative event for the dollar,” said Francesco Pesole, FX strategist at ING.

“We think the bias remains negative this week but if we get a hot break on CPI, markets are going to be back to pricing in a rate hike as their baseline.”

The dollar index, which measures the U.S. currency against six major peers, was little changed at 99.62 after touching its lowest level since June 15 on Friday.

The euro was broadly flat at $1.1563, near its strongest level since mid-June, while sterling was steady at $1.3496.

The yen weakened to 158.52 per dollar, continuing to surrender some of the gains triggered by last week’s historic intervention by Japan and the United States. The currency remains stronger than its roughly 164 per dollar level reached late last month.

Positioning data show that investors have rapidly reduced bearish bets against the yen. The Commodity Futures Trading Commission said the net short yen position fell by $8.865 billion to $3.604 billion in the week through Aug. 4.

That was the largest weekly decline in the absolute size of the net short position since March 2014.

At the same time, speculators increased their net long dollar position to its highest level since December 2022, highlighting the divergence between the dollar’s recent price weakness and positioning among some investors.

Hormuz Remains The Critical Variable For Oil

For energy markets, the diplomatic process remains the dominant near-term variable. A sustained reopening of the Strait of Hormuz would remove one of the largest immediate threats to global energy supply and could push Brent materially lower by eliminating part of the geopolitical premium embedded in crude prices.

However, analysts note that the downside could be limited if shipping companies remain reluctant to return to the route or if attacks continue in Hormuz and the Red Sea. Conversely, any collapse in negotiations, renewed attacks on tankers or damage to major oil infrastructure could rapidly push crude higher.

That tension explains why Brent remains above $83 even after last week’s sharp decline. Traders are pricing in the possibility of a diplomatic solution while maintaining a premium for the risk that the world’s most important oil chokepoint remains effectively constrained.