U.S. stock futures hover above the flatline, with traders attempting to parse through a range of conflicting reports on the status of talks between the U.S. and Iran. OpenAI is reportedly preparing to confidentially file a draft of its IPO prospectus as soon as today, capping off a week filled with news about potentially massive public debuts later this year. Take-Two Interactive shares spike after the video game maker reiterates the much-anticipated launch date of the latest installment of one of its most popular titles, while Kevin Warsh is set to be sworn as the next Chair of the Federal Reserve.

1. Futures rise

U.S. stock futures pointed higher on Friday, as investors kept tabs on the status of negotiations to end the Iran war.

By 03:44 ET (07:44 GMT), the Dow futures contract had risen by 124 points, or 0.3%, S&P 500 futures had jumped by 20 points, or 0.3%, and Nasdaq 100 futures were higher by 114 points, or 0.4%.

The main averages on Wall Street slipped in the prior session, weighed down by a report that Iran’s Supreme Leader had issued a directive to not allow enriched uranium to leave the country, denting hopes for an immediate detente with the United States.

Worries that the Strait of Hormuz will remain all but shuttered for a prolonged period of time sent oil prices higher. U.S. Treasury yields also advanced, adding to downward pressure on equities, reflecting expectations that the crisis could spark an energy shock that may lead to elevated inflation and central bank interest rate hikes.

2. Sentiment oscillates around Iran war peace talks

Yet, as has been the case throughout the conflict, sentiment has proven to be somewhat transitory, as traders race to keep up with rapid — and often contradictory — developments out of the Middle East.

Optimism around a possible breakthrough between Washington and Tehran has once again come to the fore after U.S. Secretary of State Marco Rubio suggested that discussions have shown “good signs” of progress, while a senior Iranian official quoted by Reuters said that gaps in negotiations have narrowed.

Yet, crucially, the Strait of Hormuz, a vital waterway for a fifth of the world’s oil, remains effectively closed. Questions are also swirling around its status, with U.S. President Donald Trump opposing efforts by Iran and Oman to establish a toll system for traversing the narrow conduit.

Brent crude futures for July, the global oil benchmark, were last trading higher at $105.66 a barrel, well above pre-war levels of around $70 a barrel.

3. Potential OpenAI IPO in focus

Beyond the war in Iran, one of this week’s most critical stories has revolved around America’s boom in potentially record-breaking initial public offerings.

Elon Musk’s SpaceX turned heads with its filing for an IPO that aims to raise $80 billion or more, which would well outstrip the biggest flotation on record, that of oil major Saudi Aramco in 2019.

But the size of SpaceX’s monumental transaction may be soon rivaled by another from artificial intelligence start-up OpenAI. The firm behind the mega-popular ChatGPT AI chatbot is preparing to confidentially file a draft of its IPO prospectus as soon as today, according to CNBC.

Valued at more than $850 billion by private investors, OpenAI has been working with banks such as Goldman Sachs and Morgan Stanley to gear up for a filing in the coming days or weeks, CNBC said.

4. Take-Two Interactive surges after results

Take-Two Interactive Software reported quarterly net bookings that beat expectations and reaffirmed a November launch date for its highly anticipated video game “Grand Theft Auto VI.”

Shares of the video game publisher climbed by over 7% in premarket trading.

Take-Two develops and publishes a wide variety of games across its labels Rockstar Games, 2K, and Zynga. Its most popular title is easily Rockstar’s Grand Theft Auto series. Its fifth edition has sold over 225 million units since its launch in 2013, making it the second-highest selling video game of all time.

“Grand Theft Auto VI” is scheduled to be released on November 19 this year, and is expected to sell millions of copies and bring in billions of dollars in revenue for Take-Two within days of launching. The company’s top boss Strauss Zelnick said the game would “establish new record levels of operating performance” for Take-Two in fiscal 2027.

5. Warsh to be sworn in as Fed chair

Elsewhere, Kevin Warsh is due to be sworn in as the Chair of the Federal Reserve on Friday at the White House, the Trump administration has said.

Warsh, 56, was confirmed to the role by a vote nearly along party lines on May 13 and will succeed Jerome Powell at the helm of the U.S. central bank.

He will come to the role at a precarious time for the Fed, particularly after Trump and Powell were frequently at odds over monetary policy. Trump’s call for the Fed to aggressively draw down interest rates to boost the economy was met with resistance from Powell, who stood behind the independence of policymakers from outside political influence. How closely Warsh will adhere to his predecessor’s stance remains a key question for investors.

At its latest gathering, officials at the rate-setting Federal Open Market Committee also highlighted fears around the inflationary effect of the Iran war, but were split over whether to keep hinting at future cuts to borrowing costs.

Powell, in a rare move, has also indicated that he will stay on as a Fed governor until his term finishes in early 2028, citing “my concern […] about the series of legal attacks on the Fed, which threaten our ability to conduct monetary policy without considering political factors.”