Middle East Tensions Spark Oil Price Surge Amid Fears of Supply Disruptions
Oil prices surged on Tuesday after renewed tensions in the Middle East led to fears of supply disruptions. The US military said it intercepted an Iranian 'attempted surprise attack' on troops based in the region, causing crude oil to jump around 5% to top $83 a barrel.
The attack comes just days after a few calm days had seen global benchmark Brent post its biggest three-day decline since April 2020, settling at $84.09 on Tuesday. Treasury futures also dipped lower, and the dollar was stronger against most of its Group-of-10 peers.
US equity-index futures fell in response to the news, with contracts for the Nasdaq 100 sliding 0.6%. Technology shares were under pressure as investors questioned whether massive spending on AI would generate returns sufficient to justify elevated valuations.
The Philadelphia Semiconductor Index fell 4.5% due to concerns over competition from China and tech-ecosystem financials, putting the gauge on course for its worst month since 2002 after its strongest quarter on record.