Tech shares lift markets as oil slips amid Iran tensions
Global stock markets edged higher on Friday, driven by a surge in technology sector shares, while oil prices dipped amid uncertainty over the escalating conflict between Iran and the U.S. Tensions flared after President Donald Trump declared the Iran war ceasefire agreement “over,” with both nations exchanging attacks. The FTSE 100 in London rose 0.1% to 10,478.98, though France’s CAC 40 and Germany’s DAX each fell 0.1%. In Asia, South Korea’s Kospi jumped 2.5%, while Tokyo’s Nikkei 225 gained 1.2% as SoftBank Group and Tokyo Electron climbed sharply.
Technology Stocks Lead Gains Amid AI Demand
U.S. tech stocks outperformed other sectors, with the Nasdaq composite rising 1.3% on Thursday. Micron Technology surged 4.5% after announcing plans to boost U.S. investments in memory chips, citing strong demand from the AI industry. Advanced Micro Devices and Marvell Technology also saw gains, reflecting broader optimism in semiconductor manufacturing. The S&P 500 and Dow Jones Industrial Average both rose 0.1%, though the S&P 500 futures dipped slightly earlier in the day.
In Seoul, SK Hynix shares fell 0.3% ahead of its Nasdaq debut despite the Kospi’s overall rise. Meanwhile, Australia’s S&P/ASX 200 climbed 0.5%, and Hong Kong’s Hang Seng added 0.6%, though China’s Shanghai Composite dropped 1%. The yen strengthened against the dollar after Japanese Finance Minister Satsuki Katayama outlined plans to redirect pension funds toward domestic assets.
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Oil Prices Tumble Amid Strait of Hormuz Constraints
Crude oil prices declined as traders weighed the impact of the Iran conflict on global energy flows. Brent crude fell 0.5% to $75.94 per barrel, trading near $72 before the war began in late February. U.S. crude also dropped 0.5% to $71.71, pressured by limited shipping capacity through the Strait of Hormuz, a critical artery for oil exports. The volatility highlights the delicate balance between geopolitical risks and market expectations for supply disruptions.
The dollar weakened slightly against the yen and euro, with the dollar trading at 161.71 yen and the euro at $1.1432. Analysts noted the currency moves reflected broader risk-on sentiment in markets, despite lingering concerns over Middle East tensions. The situation contrasts with past conflicts, where oil prices often spiked sharply, but current supply alternatives and global stockpiling have softened immediate impacts.
Meanwhile, investors remain closely monitoring developments in the Gulf, where the U.S. and Iran have exchanged missile strikes. The lack of a clear resolution to the standoff has kept traders cautious, even as tech stocks continue to draw buying interest. The interplay between geopolitical risks and sector-specific trends will likely shape market movements in the coming weeks.
