HONG KONG - Oil prices jumped again on Tuesday after fresh US strikes against Iran that marked an escalation in hostilities, fuelling fears over their already fragile truce and the chances of another spike in inflation.
However, tech firms enjoyed a much-needed reprieve after the latest bout of selling, although they only managed to claw back some of the hefty losses fuelled by growing fears over the AI boom.
The latest attacks came after Iranian forces struck a commercial ship in the Strait of Hormuz early on Sunday, before announcing the closure of the waterway through which about a fifth of global oil passes.
That led to a series of US strikes on sites in the Islamic republic, which replied by hitting targets in Bahrain, Jordan, Kuwait and Oman.
Oil prices shot up more than nine percent on Monday over fears of renewed conflict and the possibility that a fresh surge in inflation could force the Federal Reserve and other central banks to hike interest rates soon.
They continued to rise on Tuesday, piling on more than three percent.
Equity markets in Asia and Europe were mixed, though confidence remains fragile as traders worry that the sector's AI-led rally has gone too far.
Seoul was again at the forefront of the action, ending in positive territory after wild swings that saw it drop as much as five percent at one point.
SK hynix ended up more than three percent, the day after a 15 percent collapse. Its New York-listed shares -- which soared more than 13 percent on their debut on Friday -- plunged more than nine percent on Monday. Rival Samsung was up 3.3 percent.
Tokyo, Hong Kong, Shanghai, Singapore, Manila and Jakarta were also up, though Wellington, Taipei, Mumbai and Bangkok fell.
London, Paris and Frankfurt fell in the morning.
- AFP