Oil Surges Past $91, WTI Above $84 on Middle East Tensions
Brent crude climbed above $91 and WTI rose above $84 after U.S.-Iran hostilities escalated. Asian stocks fell, the Philadelphia Semiconductor Index entered a bear market, and the dollar strengthened on rate hike expectations.
Oil prices surged to their highest in over a month as geopolitical tensions in the Middle East escalated. Brent crude crossed $91 per barrel while WTI rose above $84, driven by fresh strikes between the U.S. and Iran. Iran targeted a power and water facility in Kuwait over the weekend, further destabilizing the region.
Asian markets declined, with South Korea's KOSPI falling more than 1%, as geopolitical risks compounded an ongoing tech selloff related to AI spending concerns. The Philadelphia Semiconductor Index entered a bear market as investors questioned whether massive AI investments can yield sufficient returns.
In the AI space, Chinese startup Moonshot AI announced plans to go public within six months after its new model intensified sector competition. Meanwhile, TSMC committed an additional $100 billion to expand chip production in Arizona, aiming to meet strong AI-related demand from U.S. clients.
The U.S. dollar strengthened as rising oil prices fueled expectations that the Federal Reserve may keep interest rates higher for longer. Investors are now focused on this week's U.S. PMI data and Fed Chair Kevin Warsh's policy outlook for clues on future rate moves.
Source: First Squawk