Rising oil prices and Middle East tensions weigh on risk sentiment despite a semiconductor rally driven by AI demand.
Oil prices climbed above $95 a barrel, fueled by fresh U.S. strikes on Iran and Houthi attacks on Red Sea tankers. The surge stoked inflation concerns, offsetting gains from an AI-driven rally in semiconductor shares.
Risk appetite remained subdued as geopolitical tensions intensified, contrasting with recent market optimism. Earlier this week, oil prices had stabilized near $90, but escalating conflicts disrupted supply expectations.
The semiconductor sector saw gains amid strong demand for AI-related chips, providing a counterbalance to broader market pressure.