Oil Prices Rise Amid US-Iran Tensions; Asian Markets Weaken on AI Concerns

Oil prices rose on Thursday as investors continued to monitor the ongoing tensions between the US and Iran. The Brent crude benchmark climbed 0.6% to $88.60 per barrel, while US crude was up 0.3% at $84.70.

In Asia, most markets were trading lower, with South Korea's Kospi extending its losses after falling more than 16% over the past two days, led by artificial intelligence-related stocks. The benchmark has fallen more than 38% from its all-time closing high of over 9,100 in June.

Chipmaker SK Hynix lost 5.6% after reporting a record quarterly operating profit that was lower than expected. Nvidia and AMD also fell, while computer chip equipment maker Tokyo Electron climbed 4.5%. The recent downturn in AI stocks has been attributed to doubts about the sustainability of massive investments by tech giants in expanding AI capacity.

The US Federal Reserve's decision to hold interest rates steady has added to market uncertainty, with financial markets set for more volatile trading amid the lack of clear guidance from the Fed. 'Did the Fed take an explicit change in its policy rate today?' asked Chairman Kevin Warsh rhetorically. 'No, but I think that's the beginning of the story.'