Oil Prices Soar Amid Middle East Supply Fears and AI Development Worries
Oil prices surged to new highs on Monday, driven by concerns over supply disruptions in the Middle East. The price of West Texas Intermediate (WTI) crude oil jumped 2.7% to $102.73 per barrel, while Brent North Sea Crude rose 2.9% to $107.66 per barrel.
The price increase was sparked by the closure of a key pipeline in Saudi Arabia, which has raised fears about potential supply disruptions. The Houthis, a Yemeni rebel group, have been attacking oil infrastructure in the region, including a recent attack on a merchant vessel in the Strait of Hormuz.
Meanwhile, tech stocks suffered losses as investors sold off shares due to concerns over the development of artificial intelligence (AI). Leaders of companies at the forefront of the AI boom, such as Anthropic CEO Dario Amodei and OpenAI's Sam Altman, have called for a slowdown in AI development to prevent potential risks.
Amodei warned that 'recursive self-improvement' - when AI can build its own next generation - could pose a threat to humanity. His comments were supported by Elon Musk, who said 'Dario is right'. The warnings came after a researcher resigned from Anthropic over fears about the technology's potential risks.
As a result of the concerns, investors sold off their tech holdings, with SoftBank plummeting over 10% and Kioxia shedding more than six percent. South Korea's SK hynix and Samsung were also sharply lower, along with TSMC in Taipei.