PodcastSquawk PodAmos Hochstein

Attacks in Saudi & Fanatics Goes All-In on Gambling 10/14/26

The discussion examines Iran policy, including the potential timeline and limits of an embargo, sanctions as a route to negotiations, and constraints on munitions supplies. It also raises questions about Saudi connections to an OpenAI engineer and Anthropic’s challenge to the Pentagon ban. Market segments point to a potentially tight diesel supply outlook, while Michael Rubin and Fanatics executives discuss intense betting competition, company spending, and Fanatics’ long-term ambitions.

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Key Takeaways

The senators argue that Russian diesel exports would barely affect fuel prices while funding the Kremlin’s war, and the segment says the planned Russian oil supply equals less than two weeks of U.S. diesel demand. That limited scale contrasts with the IEA’s warning that diesel supply could remain tight into the latter half of 2027 and fall short of demand in the fourth quarter; the segment also cites WTI at 95 and Brent at 106.

The guest presents an embargo as a months-long pressure strategy—potentially taking six to twelve months—rather than a route to the Iranian regime’s imminent collapse, and says sanctions are meant to bring Iran to negotiations. He identifies a deal restoring restrictions on nuclear-weapons-grade material and freedom of navigation in the Strait of Hormuz as a possible path, amid Iran’s reliance on proxies including the Houthis and Shia militias in Southern Iraq.

The guest says support for Ukraine and Israel and conflicts involving Iran have depleted munitions without a resupply chain capable of replacing them, and argues that a two-to-four-month production ramp-up would not meaningfully increase supply. He says those constraints could limit a more severe further round of conflict, making the military option harder to sustain alongside the deal or embargo choices he describes.

GEO-POLITICS

Russian Diesel Exports — The senators argue that allowing Russia to export diesel would have little effect on fuel prices while generating revenue for the Kremlin’s war in Ukraine. Their letter urged President Trump to cancel the arrangement.

“And more US senators. More now speaking out against president Trump's decision to allow Russia to temporarily export diesel fuel to the global market…”—

Saudi Connections — The guest says the OpenAI engineer was also an executive at a Saudi venture capital firm alongside a member of the Saudi royal family. The connection raises questions about possible Saudi government involvement, but the guest stresses that these circumstances alone do not establish it.

“But one interesting detail in this case, Andrew, is that this engineer, Alphazan, at the same time he was working at OpenAI, according to a website of a VC firm…”—

Anthropic Rehearing — Anthropic is asking a federal court in Washington to rehear its appeal of the Pentagon’s ban. The company argues that the ruling upholding the ban ignored evidence that the government retaliated against it for its views on tech safety. This remains Anthropic’s claim, not an established finding.

“Separately, Anthropic is asking a federal court in Washington to rehear its appeal in a case centering on the Pentagon's blacklisting of the company…”—

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TECHNOLOGY

Saudi Capital — The guest speculates that OpenAI’s need to raise capital for AI models and data centers could help explain why it might seek strong ties with Riyadh and the Saudi royal family. He says the reason for the arrangement is unknown and emphasizes that this is speculation.

“We don't know the answer to that. It's gonna be a question for OpenAI, but certainly all of these AI firms have been desperate to raise capital…”—

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MARKETS

Diesel Supply — The International Energy Agency report says diesel supply could remain tight into the latter half of 2027 and fall short of demand in the fourth quarter, even as refinery throughputs recover rapidly. The report segment also cites WTI at 95 and Brent at 106.

“And we got a new report from the International Energy Agency warning, constraints on the diesel market will extend now well into next year…”—

Russian Oil Scale — The segment says the amount of oil Russia plans to supply to the global market is equivalent to less than two weeks of U.S. diesel demand.

“Amount of oil that Russia plans to supply to the global market equates to less than two weeks of US diesel demand.”—

Energy Futures — The guest says energy prices are not going down and argues that the futures price shown on screen is detached from reality. He cautions that the quoted futures price may therefore poorly reflect current energy-market conditions.

“And at some point, gotta sit down and say, okay, how do I cut my losses? Do a deal that maybe I don't like…”—

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FORECASTS

Anthropic Valuation — Anthropic plans to disclose its third-quarter financials to potential investors. The report says investors are seeking a valuation ahead of an expected IPO that could put the company above SpaceX, but gives no specific figure and presents that outcome as a possibility.

“Anthropic planning to disclose its third quarter financials for the first time in a meeting today with potential investors…”—

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Diesel Supply And Russia

The IEA warns diesel supplies could stay tight into 2027, while senators urge Trump to reverse a temporary Russian diesel export arrangement they say offers little price relief and funds the Kremlin.

OpenAI Espionage Allegations

A former OpenAI engineer is accused of planting a concealed recording device in an executive conference room; investigators have not established whether the alleged conduct involved state sponsorship.

Anthropic Pentagon Appeal

Anthropic plans to disclose financial results to prospective investors as it challenges a Pentagon-related ruling, arguing the government retaliated against the company over its technology-safety views.

Houthi Attacks And Iran Policy

Amos Hochstein says Washington’s lack of response has allowed Houthi advances and argues the administration must choose among negotiating, escalating the war, or waiting under an embargo.

Munitions And War Limits

Hochstein says years of support for Ukraine and Israel have strained resupply capacity, making a larger conflict risky; he favors negotiations tied to nuclear limits and freedom of navigation.

Fanatics Betting Investment

Michael Rubin says Fanatics will spend aggressively to gain share in betting, using its broader sports ecosystem, customer loyalty, and FanCash and Fair Play features to compete.

Sports Betting Competition

Rubin expects fierce competition among sportsbooks and prediction markets for years, but believes betting remains an attractive long-term business that Fanatics can fund through profits elsewhere.

Fanatics Lawsuits And Collectibles

Rubin says Fanatics will contest lawsuits rather than settle, and credits product innovation, marketing, and athlete involvement with expanding the collectibles category.

Prediction Markets And Age Limits

Rubin says Fanatics will keep prediction-market access at 21 despite competitors accepting younger users, emphasizing long-term customer trust and the company’s connected businesses.

Fanatics Private Company Plans

Rubin says Fanatics has no near-term reason to go public, citing adequate cash flow, operational uncertainty, and freedom to invest heavily while pursuing long-term growth.

Squawk Pod Sign-Off

The hosts close the episode, thank listeners, and invite them to follow the show and tune in again.

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AI-Generated: Made by AI from source transcripts and may contain errors.

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