Oil prices, Target earnings, the new iPhone and more in Morning Squawk

Good morning! As tensions escalate in Iran, today marks the commencement of the U.S. midterm primary elections. Investors have a lot to digest this morning as stock futures are taking a hit after a mixed day on Wall Street. In a significant development, the U.S. embassy in Riyadh, Saudi Arabia, was targeted by two drones, highlighting the ongoing conflict in Iran. President Donald Trump indicated that the situation might extend beyond the initial four-week forecast he provided earlier. On the retail front, Target has reported fourth-quarter earnings that exceeded Wall Street's expectations, resulting in a 4% increase in shares before the market opened. However, the retailer did experience a decline in revenue and customer traffic during the crucial holiday shopping season, with revenue down approximately 1.5% compared to the previous year. This marks the fourth consecutive quarter of reduced store and website visits. Today, Target will host an investor day at its Minneapolis headquarters, where CEO Michael Fiddelke will participate in his first live interview since taking on the role last month. In the energy sector, experts caution consumers to prepare for rising gas prices within a week, following a recent spike in oil prices. According to Ken Medlock, senior director at Rice University’s Center for Energy Studies, a $10 per barrel increase in oil could lead to a 25-cent hike at the pump. Last June, gas prices hit record highs as a result of geopolitical tensions following Russia's invasion of Ukraine. The ongoing conflict in Iran may complicate Trump's narrative about inflation control, as noted by Macquarie Group strategist Thierry Wizman, who remarked that war tends to be inflationary. Meanwhile, Apple has kicked off a week of product launches, unveiling the iPhone 17e, a more affordable version of the iPhone 17, starting at $599. Additionally, the company has upgraded its iPad Air by replacing the M3 chip with the new M4 chip, while maintaining the same design and price point. Anticipation is building for further announcements from Apple in the coming days, with reports indicating that stores should brace for a surge in customer activity. In the streaming arena, Paramount Skydance is looking to transform the landscape by potentially merging Paramount+ and HBO Max, pending regulatory approval. Paramount CEO David Ellison shared that while there are no specifics on pricing or the name of the new platform, HBO is expected to remain a sub-brand within the larger service. Lastly, JPMorgan Chase CEO Jamie Dimon addressed Trump’s $5 billion debanking lawsuit, stating that it lacks merit during an interview yesterday. Stay tuned for more updates as these stories develop!