Global oil prices extended their dramatic surge on Thursday following a major escalation in Middle East geopolitical tensions. Investors reacted strongly after US President Donald Trump declared that the fragile ceasefire with Iran was officially over. Consequently, Washington revoked a critical temporary sanctions waiver for Iranian oil, heightening fears of a severe supply crunch.
In response to the swift diplomatic collapse, both major crude contracts soared by roughly eight percent. Most notably, Brent crude futures surpassed the $80 a barrel mark for the first time in two weeks. This sudden energy spike has fanned fresh concerns over global inflation and its broader impact on economic growth.
Retaliatory Military Strikes Threaten Vital Shipping Lane
The latest market anxiety follows direct military action ordered by the White House. President Trump confirmed fresh retaliatory strikes on Iranian targets following recent attacks on commercial vessels navigating the strategic Strait of Hormuz.
“This is in retribution for yesterday’s bombing of ships by Iran,” Trump stated in a recent post on Truth Social.
He further warned Tehran of “much worse” consequences if hostilities continue in the strait, through which a fifth of the world’s daily oil supply passes. However, the US president later softened his rhetoric slightly, stating he expected the military flare-up to end quickly. He claimed that Iranian officials had called a little while ago to desperately make a deal, though he did not provide specific details and openly questioned their reliability.
Market experts suggest the situation remains highly volatile. Neil Wilson, an analyst at Saxo Markets, noted that Trump’s remarks underscore severe fears of returning to pre-MOU conditions. While a total breakdown of negotiations isn’t the guaranteed base case, he emphasized that the structural risks have undeniably increased.
Global Stock Markets Rise via Tech Sector Bargain-Buying
Despite the looming energy crisis, global equity markets managed to advance during early Thursday trade. Sentiment remained cautious, but tech shares attracted a wave of bargain-buying following an extended period of intense selling over AI valuation concerns.
Asian markets led the positive shift, with both Tokyo and Seoul posting healthy two percent gains. Hong Kong also extended its recent upward rally, propelled forward by a surge in major Chinese technology firms. Similarly, bourses in Shanghai, Singapore, Wellington, and Taipei moved into positive territory.
Chip Giant SK Hynix Eyes Historic $28 Billion US Market Debut
Much of the market’s attention is currently fixed on South Korean semiconductor powerhouse SK Hynix. The firm is preparing for its highly anticipated American Depositary Receipts (ADRs) debut on the Nasdaq exchange this Friday.
Remarkably, the upcoming US listing was more than seven times oversubscribed ahead of its launch, highlighting immense investor appetite. The company is expected to announce its final pricing later on Thursday. Financial observers estimate the massive equity sale could raise up to $28 billion, making it one of the largest share offerings in market history.
Driven by this intense institutional interest, SK Hynix’s Seoul-listed shares jumped almost seven percent on Thursday. This recovery provides a crucial buffer for the tech titan, which had lost over 30 percent of its value since hitting a record high last month during the broader global semiconductor correction.
