The sharp rise in energy costs arrives as global markets grapple with heightened geopolitical volatility and a cooling appetite for artificial intelligence stocks. Brent crude reached $78.80, while U.S. benchmark crude climbed 6.4% to $75. Traders are reacting to Tehran’s insistence on controlling transit routes through the Strait, a move that threatens to disrupt established maritime practices and impose new fees on shipping lanes.
Financial indices across Europe and Asia retreated in response to the instability. Germany’s DAX fell 2.4%, and Tokyo’s Nikkei 225 dropped 2.1%. Tech-heavy markets faced additional pressure as investors soured on AI-related assets; Samsung Electronics and SK Hynix saw significant declines in South Korea. Ipek Ozkardeskaya of Swissquote noted that geopolitical headlines now dominate market sentiment, warning that any further escalation could deepen the sell-off in technology equities and weigh heavily on global valuations.
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