Oil prices rose over 2% to their highest in over a week, driven by Middle East energy flow disruptions and fading U.S.-Iran peace hopes. Meanwhile, stock markets saw mixed performance, with Nvidia announcing AI infrastructure funding and Intel raising $20 billion.
Geopolitical tensions in the Middle East and concerns over oil supply routes are impacting global energy prices, while significant funding initiatives in AI infrastructure signal continued investment in the technology sector.
Oil prices edged closer to $90 a barrel as geopolitical tensions between the U.S. and Iran persisted. U.S. President Donald Trump's response to Tehran's conditions for a peace deal introduced new demands, potentially hindering efforts to ensure the free passage through the Strait of Hormuz. Ongoing issues at the Strait of Hormuz and an attack in the Bab el-Mandeb Strait are contributing to concerns over global oil supplies.
Meanwhile, stock markets experienced a mixed performance. While Nvidia announced a new partnership aimed at funding AI infrastructure, and Intel successfully raised $20 billion through a share sale, broader market gains were constrained by ongoing uncertainty surrounding the global inflation outlook.