Oil prices extended their rally on Thursday as geopolitical friction between the United States and Iran intensified, casting a shadow over global energy supply chains.
The escalation in the Middle East has reignited fears of potential disruptions to key shipping routes, particularly the Strait of Hormuz, which remains a critical chokepoint for global oil flows.
This development follows a series of warnings from Iran regarding tanker movements in the region, adding to the uncertainty that has plagued energy markets in recent weeks.
Despite the geopolitical headwinds, Asian equity markets posted broad gains, driven by a strong rebound in technology stocks.
Investors appear to be rotating back into growth sectors, buoyed by renewed optimism surrounding the artificial intelligence boom.
This shift in sentiment suggests that while geopolitical risks are pricing into energy assets, the broader equity market is finding support in the tech sector's momentum.
The divergence highlights the complex interplay between geopolitical risk and sector-specific growth narratives in current market conditions.