<div id="readability-page-1" class="page"><span></span><div><p><em>This is CNBC's Morning Squawk newsletter. </em><em>Subscribe here</em><em> to receive future editions in your inbox.</em></p><p>Good morning. We're coming off a weekend that could have long-term ramifications for world politics, so let's dive in.</p><p>Stock futures are tumbling this morning. The market notched a losing day and week on Friday.</p><p>Here are five key things investors need to know to start the trading day:</p></div><h2>1. Iran</h2><div id="ArticleBody-InlineImage-108271334"><div><div><p>A screen grab from a video released on U.S. President Donald Trump’s Truth Social account shows Donald Trump making statements regarding combat operations on Iran on February 28, 2026 in Pal Beach, Florida, United States.</p><p>Anadolu | Anadolu | Getty Images</p></div></div></div><div><p>Strikes by the U.S. and Israel overnight on Saturday killed Iran's leader. The mission, named &#34;Operation Epic Fury,&#34; resulted in the deaths of multiple American service members and prompted retaliatory hits by Iran. </p><p>Here's what to know:</p><ul><li>The U.S.-Israeli action killed Supreme Leader Ayatollah Ali Khamenei, giving way to one of the most impactful moments for Iran since 1979. Hundreds of Iranian citizens reportedly died from the strikes.</li><li>President Donald Trump said he would &#34;avenge&#34; the deaths of the three U.S. service members killed, who were the first known American casualties tied to the mission. The U.S. also said three fighter jets crashed in what appeared to be a &#34;friendly fire incident.&#34;</li><li>Trump told CNBC's Joe Kernen that the military operations were &#34;ahead of schedule.&#34; He's warned that the conflict could last up to four weeks and result in more American deaths.</li><li>U.S. crude oil prices surged this morning. Investors are racing to figure out the implications for the global market and whether a 1970s-style energy shock could be in store.</li><li>A large portion of the Middle East's airspace was closed, leaving thousands of flights cancelled and travelers stranded around the world.</li><li>Follow the latest updates here.</li></ul></div><h2>2. Market response</h2><div id="ArticleBody-InlineImage-108271052"><div><div><p>Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Feb. 27, 2026.  </p><p>Brendan McDermid | Reuters</p></div></div></div><div><p>Concern about the conflict spilled into the public markets, with stock futures pulling back sharply in premarket trading. Follow live markets updates here.</p><p>Gold futures advanced as investors sought safe havens, while Wall Street's so-called fear gauge jumped to its highest levels of 2026. On the other hand, energy and defense stocks rallied in premarket trading.</p><p>Investors were already coming into today's session on their back foot: The <span id="SpecialReportArticle-QuoteInBody-16">S&amp;P 500<span><span id="-WatchlistDropdown"></span></span></span> and <span id="SpecialReportArticle-QuoteInBody-17">Nasdaq Composite<span><span id="-WatchlistDropdown"></span></span></span> notched their worst months in nearly a year in February. But the <span id="SpecialReportArticle-QuoteInBody-18">Dow Jones Industrial Average<span><span id="-WatchlistDropdown"></span></span></span> eked out a gain for February, marking its longest winning streak since 2018.</p></div><h2>3. HathAway</h2><div id="ArticleBody-InlineImage-108140427"><div><div><p>Warren Buffett and Greg Abel at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, May 3, 2025.</p><p>David A. Grogen | CNBC</p></div></div></div><div><p>In <span id="SpecialReportArticle-QuoteInBody-19">Berkshire Hathaway<span><span id="-WatchlistDropdown"></span></span></span>'s last quarter with Warren Buffett as CEO, operating earnings fell nearly 30%. The conglomerate was dragged down in large part by a 54% slide in profits from the insurance underwriting business.</p><p>Still, analysts and investors approved of new CEO Greg Abel's first annual shareholder letter. As CNBC's Yun Li reports, they appeared pleased with his commitment to the company's value-focused philosophy and his insight into the capital allocation strategy. </p><p>While Abel isn't planning to make major changes to the Omaha-based firm's operations, he did strike a different tone than Buffett had taken in previous letters. See all the highlights here.</p></div><div><div id="SpecialReportArticle-RelatedContent-1"><div><div><h2>Get Morning Squawk directly in your inbox</h2><div><p>CNBC's Morning Squawk recaps the biggest stories investors should know before the stock market opens, every weekday morning.</p><p>Subscribe here to get access today.</p></div></div></div></div></div><h2>4. Artificial interference</h2><div id="ArticleBody-InlineImage-108125174"><div><div><p>OpenAI and Anthropic AI.</p><p>Jakub Porzycki | Nurphoto | Omar Marques | SOPA Images | Getty Images</p></div></div></div><div><p>Trump forced U.S. agencies to stop using Anthropic's technology after the artificial intelligence startup pushed back against the Pentagon's usage demands. Within hours, Sam Altman, the CEO of competitor OpenAI, said his company struck a deal with the Department of Defense.</p><p>Notably, Altman said that OpenAI had the same &#34;red lines&#34; around guardrails on the technology as Anthropic and that the Defense Department agreed to these restrictions. It's not clear why the federal government would accept such requirements from OpenAI but not Anthropic.</p><p>But there's a silver lining for Anthropic: The company's Claude AI assistant app jumped to the top of <span id="SpecialReportArticle-QuoteInBody-26">Apple<span><span id="-WatchlistDropdown"></span></span></span>'s list of free apps over the weekend. As CNBC's Jordan Novet reports, the climb suggests that Anthropic could be benefiting in the court of public opinion from its pushback to the Pentagon.</p></div><h2>5. A tale of two gyms</h2><div id="ArticleBody-InlineImage-104982295"><div><div><p>A user on a treadmill at a Planet Fitness gym.</p><p>Source: Getty Images</p></div></div></div><div><p>Looking for the latest evidence of the so-called K-shaped economy? Look no further than the gym.</p><p><span id="SpecialReportArticle-QuoteInBody-28">Life Time<span><span id="-WatchlistDropdown"></span></span></span> and <span id="SpecialReportArticle-QuoteInBody-29">Planet Fitness<span><span id="-WatchlistDropdown"></span></span></span> both reported solid growth. But as CNBC's Brandon Gomez finds, below-the-surface differences in their earnings underscore the increasing gap in consumers' habits.</p><p>At luxury gym Life Time, members are shelling out for higher dues and add-on experiences such as personal training and spa visits. Meanwhile, value chain Planet Fitness' soft outlook raised alarm about how much further price-sensitive consumers can stretch their wallets.</p></div><h2>The Daily Dividend</h2><div><p>Here's what we're keeping an eye on this week:</p><ul><li>Tuesday: <span id="SpecialReportArticle-QuoteInBody-30">Target<span><span id="-WatchlistDropdown"></span></span></span>, <span id="SpecialReportArticle-QuoteInBody-31">Best Buy<span><span id="-WatchlistDropdown"></span></span></span>, <span id="SpecialReportArticle-QuoteInBody-32">Versant Media<span><span id="-WatchlistDropdown"></span></span></span> earnings (before the bell); <span id="SpecialReportArticle-QuoteInBody-33">CrowdStrike<span><span id="-WatchlistDropdown"></span></span></span> earnings (after the bell)</li><li>Wednesday: <span id="SpecialReportArticle-QuoteInBody-34">Abercrombie &amp; Fitch<span><span id="-WatchlistDropdown"></span></span></span> earnings (before the bell); <span id="SpecialReportArticle-QuoteInBody-35">Broadcom<span><span id="-WatchlistDropdown"></span></span></span>, <span id="SpecialReportArticle-QuoteInBody-36">Okta<span><span id="-WatchlistDropdown"></span></span></span> and <span id="SpecialReportArticle-QuoteInBody-37">American Eagle<span><span id="-WatchlistDropdown"></span></span></span> earnings (after the bell); ADP jobs report</li><li>Thursday: <span id="SpecialReportArticle-QuoteInBody-38">Kroger<span><span id="-WatchlistDropdown"></span></span></span> earnings (before the bell); <span id="SpecialReportArticle-QuoteInBody-39">Costco<span><span id="-WatchlistDropdown"></span></span></span>, <span id="SpecialReportArticle-QuoteInBody-40">Gap<span><span id="-WatchlistDropdown"></span></span></span> and <span id="SpecialReportArticle-QuoteInBody-41">Olaplex<span><span id="-WatchlistDropdown"></span></span></span> earnings (after the bell)</li><li>Friday: Nonfarm payrolls report</li></ul><p>—<em> CNBC's Lee Ying Shan, Vinay Dwivedi,</em> <em>Garrett Downs, Greg Iacurci, Azhar Sukri, Spriha Srivastava, Emma Graham, Leslie Josephs, Yun Li, Fred Imbert, Alex Crippen, Spencer Kimball, Dan Mangan, Ashley Capoot and Brandon Gomez</em> <em>contributed to this report. Melodie Warner edited this edition.</em></p></div></div>

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<p>In today's Morning Squawk, key highlights include: 1) U.S. and Israeli strikes in Iran resulted in the death of Supreme Leader Ayatollah Ali Khamenei, escalating tensions and causing a surge in crude oil prices. 2) Stock futures fell sharply amid market concerns, with gold prices rising as investors sought safe havens. 3) Berkshire Hathaway reported a nearly 30% drop in operating earnings, but new CEO Greg Abel's shareholder letter received positive feedback. 4) OpenAI secured a Pentagon deal after Anthropic's pushback, while Anthropic's app gained popularity. 5) Life Time and Planet Fitness reported growth, reflecting consumer behavior differences in the K-shaped economy.</p>

- U.S. and Israeli strikes killed Iran's Supreme Leader Ayatollah Ali Khamenei, marking a significant geopolitical shift.  
- The conflict led to a surge in oil prices and impacted global markets, with stock futures dropping sharply as concerns about escalating conflict grew.  
- In corporate updates, Berkshire Hathaway's profits fell ahead of new CEO Greg Abel’s directions, while contrasting trends were observed in gym memberships reflective of the K-shaped economy.

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Iran, Berkshire Hathaway earnings, OpenAI's Pentagon deal and more in Morning Squawk