Oil extends gains after latest US strikes; tech stocks remain under pressure

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Singapore: Global oil prices rose further on Tuesday, as the latest US strikes on Iran raised concerns about possible disruptions to Middle East energy supplies. Brent crude and US West Texas Intermediate (WTI) prices increased further as investors assessed the danger of a larger regional conflict that may disrupt critical shipping routes and global crude exports.

Meanwhile, technology companies continued to fall, pulling major equity indexes down. Chipmakers and other high-growth industries were under pressure as rising oil costs fuelled rising concerns, heightening the prospect that central banks will hold interest rates higher for longer. Energy stocks advanced on the back of higher oil prices, but investors remained cautious ahead of major inflation data and corporate earnings, which could define market direction in the coming weeks.

Analysts predict that market volatility will prevail as global tensions stay high. Traders are keenly watching developments in the Middle East for signs of additional escalation that might impede oil shipments or shipping via the Strait of Hormuz, a critical route for global crude supplies. Gold and other safe-haven assets saw increased demand, reflecting growing investor anxiety.