Global Markets Slide as Middle East Attacks Drive Oil Prices Toward 110 Dollars

Global stock markets declined on Monday as crude oil prices surged following attacks on energy infrastructure in Saudi Arabia and shipping vessels in the Middle East. Brent crude rose toward 110 dollars per barrel, while West Texas Intermediate climbed above 103 dollars. These price spikes have intensified fears of renewed global inflation and increased the likelihood that the U.S. Federal Reserve will raise interest rates during its upcoming meeting. Market analysts note that the closure of a key Saudi pipeline and risks in the Strait of Hormuz and the Bab al-Mandab strait are primary drivers of the supply concerns.

Equity markets faced additional pressure from a sell off in the technology sector. Major artificial intelligence companies called for a general slowdown in AI development, leading to losses for chipmakers such as Nvidia, Samsung, and SK Hynix. The Nasdaq fell 1 percent, and European indices including the Stoxx 600 and the Dax also declined. In contrast, the Argentine S&P Merval index rose 0.5 percent, boosted by gains in energy stocks like YPF and Vista Energy.

Financial indicators show a mixed response across other assets. The U.S. dollar strengthened, while gold prices fluctuated around 4,300 dollars per ounce. In Europe, the spread between Italian Btp and German Bund bonds stood at 88 points. Additionally, reports indicate that Eurozone governments are preparing for a major leadership reshuffle at the European Central Bank by the end of the year, as several key mandates are set to expire.