Middle East Tensions Spark Global Market Turmoil Amid AI Worries

Global markets took a hit on Monday as AI-linked stocks plummeted in response to warnings from tech leaders about the pace of artificial intelligence development.

The Brent crude oil price surged nearly 3% amid attacks on Saudi Arabian infrastructure and shipping disruptions in the Gulf, leading to concerns over a prolonged period of elevated oil prices and potential worsening global inflation.

Escalating tensions in the Middle East have also postponed diplomatic talks in Oman, further contributing to investor unease.

As markets anticipate central bank decisions this week, there is a high likelihood of interest rate hikes from both the U.S. Federal Reserve and the Bank of Japan, which could challenge equities.