Middle East Tensions Send Oil Prices Soaring as Tech Stocks Slump
Oil prices surged more than 4% on Wednesday after renewed fighting in the Middle East reignited concerns over energy supplies through the Strait of Hormuz. Brent crude and US West Texas Intermediate each gained more than 4%, with Brent continuing a volatile month that has seen prices swing from around $72 a barrel at the start of July to above $100 last week before easing during the brief pause in fighting.
The latest escalation ended a three-day lull in hostilities after nearly two weeks of US airstrikes on Iran and retaliatory missile and drone attacks targeting Washington's regional allies. According to US Central Command (CENTCOM), the operation targeted 'Iran-aligned terrorists' directed by Iran's Islamic Revolutionary Guard Corps (IRGC) to attack US forces and Saudi energy infrastructure.
Tech stocks remained under pressure as investors reassessed lofty expectations surrounding artificial intelligence. The sell-off intensified after technology publication The Information reported that Chinese company Shanghai Yuliangsheng had begun mass production of chipmaking technology in a market long dominated by Dutch equipment maker ASML. South Korea's benchmark Kospi index dropped more than 6%, extending Tuesday's sharp losses.