AI Safety Concerns Weigh on Tech Stocks as Oil Prices Surge

Global tech stocks took a hit Monday after leaders in the artificial intelligence industry expressed concerns about the need for a slowdown in AI development to ensure safety. OpenAI CEO Sam Altman supported Anthropic's CEO Dario Amodei, who had previously called for caution, saying that the industry should slow down development of world-changing technology.

The remarks from Altman and Amodei weighed on chipmakers such as Nvidia, whose stock slipped 2.7%, and Intel, which dropped nearly 6%. Other affected stocks included Broadcom, Texas Instruments, and Advanced Micro Devices.

The price of Brent crude oil rose 3.8% to $108.74 a barrel, with the international standard increasing 2.6% to $107.37 per barrel. The surge in oil prices was partly due to concerns over global supplies after Saudi Arabia shut down a major oil pipeline used to bypass the Strait of Hormuz following an attack.

The situation remains fluid, and ING commodities strategists noted that sizeable volumes of oil have still been moving through the strait despite tensions with Iran-backed Houthi rebels. The capture of strategic islands in the southern Red Sea has strengthened their control over a major maritime shipping route, further complicating global energy supplies.