Brent Oil Surges as Middle East Tensions Fuel Global Market Slump
The global market witnessed a sharp decline in shares across Asia on Friday, following the surge in Brent oil prices to its highest level since May. The US dollar also reached a 40-year high against the Japanese yen, trading at 163.79 yen early in the day.
The increase in oil prices can be attributed to the ongoing crisis in the Middle East, with heavy fighting threatening to disrupt global oil and gas supplies. Brent crude shot up to $102 per barrel on Thursday before settling at $100.69, while US benchmark crude slipped 1.1% to $91.23.
The uncertainty caused by the Middle East conflict has also led to a sell-off in AI-related shares. Alphabet's stock fell 7.1%, despite delivering stronger profit and revenue than expected, as investors focused on the company's plans for capital spending. SoftBank Group, which has significant investments in artificial intelligence, tumbled 7.4%.