Oil prices continued to rise as peace talks in the Middle East stalled, though stocks were mostly up on continued demand for anything AI-related.
Despite Donald Trump’s assurances that the United States and Iran are moving closer to ending the three-month war and reopening the Strait of Hormuz, oil investors appear unmoved as they wait for significant progress.
Uneasiness on stock exchanges rose this week after reports from Iran that it had cut contact over Israeli attacks on Lebanon, which the US president denied on Tuesday.
- Fake news reports that the Islamic Republic of Iran and the US stopped talking a few days ago are false and wrong – he wrote on his Truth social network.
- Conversations between us are ongoing, including four days ago, three days ago, two days ago, one day ago and today – he stated.
He added: “Where they’re going, you never know, but as I said to Iran, ‘It’s time, one way or another, to get a deal. You’ve been doing this for 47 years and it must not be allowed to continue!'”
Israel continues to attack Lebanon, threatening the fragile truce between Washington and Tehran, while Iran has fired missiles at nearby countries.
The president said he remains optimistic about the deal.
However, the US military said on Tuesday that it had “successfully defeated” a series of Iranian missile and drone attacks in the Gulf and carried out self-defense strikes on Qeshm Island. Centcom also announced that three attack drones launched by Iran “toward civilian seafarers” were hit.
Uncertainty over the peace deal has lifted oil prices by more than one percent, with both major contracts up around five percent this week.
However, the stock continued its stunning run, boosted by the technology sector and demand for artificial intelligence.
Tokyo rose more than two percent, helped by chipmaker Tokyo Electron’s rise of more than 11 percent, while Advantest also jumped.
Taipei grew by a similar amount thanks to the strong growth of Taiwan Semiconductor Manufacturing Company.
Shanghai, Sydney, Singapore and Manila also rose, while Hong Kong, Wellington and Jakarta fell. Seoul was closed for a holiday.
- Capital markets are once again following the guidelines of the technology sector, not geopolitical headlines – said IG’s chief market analyst Chris Beauchamp.
- Tensions over Iran haven’t affected investor appetite much, and a series of AI-related announcements have provided markets with a more compelling narrative this week. The pattern is known: when large technology companies achieve results, broader indexes usually follow them – he said.
