Oil Prices Surge Towards $100 Amid Middle East Conflict; AI Tech Stocks Cushion Asian Markets

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The outbreak of direct hostilities between the US and Iran has immediately impacted global energy markets. Following missile strikes near Iran’s Kharg Island, Brent Crude prices surged by 1.6% to reach $99.50 per barrel, marking its highest trading level since July.

Market Reaction & Outlook:

• Inflation Concerns Intensify: The sharp increase in energy costs has reignited global inflation fears. Market indicators show a 58% probability that the US Federal Reserve will implement another interest rate hike during its upcoming mid-September policy meeting.

• AI Tech Resilience: Despite the geopolitical friction, select Asian equity benchmarks, including South Korea’s Kospi and Japan’s Nikkei, managed minor recoveries. Strong buying support for major semiconductor and AI hardware giants like Samsung and SK Hynix prevented a broader market sell-off.