Global markets are grappling with a dual shock as crude oil prices rally sharply on renewed geopolitical tensions in the Middle East, while equity markets retreat amid a broad-based sell-off in semiconductor stocks.
The divergence highlights a shift in investor sentiment, with capital flowing from growth-oriented technology names into safe-haven commodities as fears of supply disruption intensify.
Brent crude and WTI benchmarks climbed significantly in early trading, driven by reports that the US has indicated the Iran ceasefire agreement has effectively collapsed.
This development has reignited concerns over potential supply disruptions in the Persian Gulf, prompting a rapid repricing of energy risk.
The surge in oil prices reflects market anxiety over the possibility of broader regional conflict, which could constrain global supply chains and elevate inflationary pressures.
On the equity side, semiconductor stocks continued their downward trajectory, weighing heavily on major indices in both Asia and the United States.