Oil rallied in early European trade after renewed military escalation in the Middle East, while U.S. stock futures faltered in a fresh round of weakness for artificial-intelligence stocks.
The U.S. conducted multiple waves of strikes on Iran, while Iranian forces once again fired at commercial vessels in the Strait of Hormuz as the two sides intensified their standoff over control of the waterway. Brent crude prices jumped close to 4% in response, while the dollar strengthened and sovereign debt fell across the globe.
Memory chip stocks tumbled in South Korea, prompting a sharp fall in artificial intelligence-related stocks across Europe. Futures for the tech-heavy Nasdaq fell, as U.S. chip stocks looked set to join the global selloff.
For the week ahead, investors will watch Tuesday's U.S. consumer price index inflation data as they look to plot the Federal Reserve's rate-setting path. Fed Chairman Kevin Warsh will appear before Congress shortly after the inflation print. In equity markets, a clutch of Wall Street banks report earnings this week, while earnings for Taiwan Semiconductor Manufacturing Co. on Thursday will be another health check for the AI trade.
--In early European trading, Brent crude was up 3.55% to $78.71 a barrel, while WTI futures rose 3.5% to $73.90 a barrel, slightly paring earlier gains. "Escalation has slowed vessels transiting the strait to a trickle, renewing concerns over oil supply tightness through the third quarter," analysts at ING said. "The risk is that this escalates to levels seen early in the war, where neighboring countries and their energy infrastructure are also targeted."
--U.S. stock futures were lower across major indexes. Futures for the Dow Jones Industrial Average edged 0.1% lower, while the S&P 500 fell 0.4%. Nasdaq futures were 1.2% lower. Chip makers Micron Technology and SanDisk were 6.3% and 7.1% lower in after-hours trade, while Nvidia slid 2%.
--Asian stock indexes were largely lower. South Korea's Kospi cratered as SK Hynix's Seoul-listed shares tumbled over 15% despite its historic U.S. trading debut on Friday. The index closed 9.85% lower. Japan's Nikkei 225 index declined 1.9%, whereas Hong Kong's Hang Seng gained 0.2%. China's benchmark Shanghai Composite fell 2.1%.
--European stock indexes largely fell in early trade as technology and mining stocks slid. The Europe-wide Stoxx 600 was down 0.25%. Germany's DAX fell 0.2%, with chip maker Infineon down 3%. Peer STMicroelectronics fell 2.35%, leading the fallers in the CAC 40. The index slipped 0.1%, with Schneider Electric losing 1.2%. The semiconductor-heavy Dutch AEX was 0.3% lower as ASML fell 2.1%. Spain's IBEX 35 fell 0.3%, while Italy's FTSE MIB was down 0.15%. London's FTSE 100 was 0.3% higher, however, as oil majors Shell and BP rose 1.6% and 2.8%, respectively.
--The dollar rose after the U.S. and Iran traded new attacks, pushing oil prices higher and driving investors toward safe-haven assets. The DXY dollar index rose 0.2% to 101.113.
--U.S. Treasury yields rose in Asian trade as oil prices mounted. The two-year Treasury yield last traded at 4.230%, up 2.3 basis points and close to 15-month highs. The 10-year yield was up 1.8 basis points at 4.586%.
--Eurozone government bond yields rose in opening trade, tracking moves in their U.S. peers. The selloff was prompted by the fresh military strikes in the Middle East pushing up oil prices. The 10-year Bund yield rose 1.5 basis points to 3.057%. The Italian 10-year BTP yield was up 2.5 basis points at 3.840%.
--Bitcoin fell 2.2% to $62,738.
--Gold futures slid more than 1% after the U.S.-Iran escalation revived concerns about inflation and prospects of tighter monetary policy. In early trading, New York gold was down 1.2% to $4,066.10 a troy ounce. The latest escalation, which is renewing concerns over the future of the Strait of Hormuz and supply tightness in the third quarter, pushed U.S. Treasury yields and the dollar higher, adding further pressure on non-yielding precious metals.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
July 13, 2026 04:11 ET (08:11 GMT)
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