Markets on edge as Middle East strikes lift oil and Asian tech stocks crash

Markets moved sharply on Wednesday after renewed Middle East hostilities and a fresh wave of selling in technology shares. Oil prices rose and Asian tech-heavy stock markets plunged, with South Korea’s benchmark suffering one of the steepest declines.

Oil spikes after strikes and tanker seizures

Oil climbed as volatility returned to the crude market following strikes by US and Saudi warplanes on Iran-backed militants in Iraq. US Central Command said the strikes targeted “Iran-aligned terrorists that the Islamic Revolutionary Guard Corps (IRGC) directed to attack US forces and Saudi energy infrastructure.”

CENTCOM had earlier said Tehran launched multiple ballistic missiles in an “attempted surprise attack on US forces based in the Middle East,” but that they were intercepted. Iran said it had halted three oil tankers in the strait.

Traders pushed benchmarks higher: in early Asian trade US West Texas Intermediate was reported up around 3.7 percent to about $82 a barrel, while North Sea Brent crude rose more than three percent to the mid‑$80s per barrel. Later regional figures showed WTI near $82.25 and Brent around $87.34.

Tech sell-off deepens in Asia

Investors intensified selling in technology stocks amid renewed doubts over the sustainability of heavy investment in artificial intelligence, hitting chipmakers hardest.

South Korea’s Kospi plunged more than 11 percent to 5,338.56, extending the previous day’s losses. Chipmakers SK hynix and Samsung were among the hardest hit: SK hynix fell almost 20 percent and has lost more than 50 percent since hitting a record high a month ago, while Samsung dropped more than 12 percent.

Tokyo also suffered, with the Nikkei 225 down 2.3 percent at 60,945.73. Chip-related moves included Kioxia plunging about 13 percent and Tokyo Electron down about 12 percent. In Taipei, TSMC was down around 4 percent. Other regional markets were mixed: Hong Kong’s Hang Seng was up 1.4 percent at 25,657.66, while Shanghai’s Composite was down 0.5 percent at 3,793.18.

Company results and guidance under scrutiny

SK hynix’s latest quarterly results showed operating profit and revenue below expectations even as net profit jumped. Market commentary noted that as a major supplier of high‑bandwidth memory to Nvidia, the company’s margins and future guidance would be central to investor decisions.

Macro risks and central bank watch

Markets were also watching the US Federal Reserve as it concluded a two‑day meeting. Most traders expected rates to be left unchanged, but commentators warned that the Fed’s new leadership approach to forward guidance could leave room for surprise. The source reported that new Fed chair Kevin Warsh had refused to publicly share his views on the economic outlook as part of proposed reforms to reduce forward guidance.

Market snapshot

• Seoul – Kospi: DOWN 11.4% to 5,338.56
• Tokyo – Nikkei 225: DOWN 2.3% at 60,945.73
• Hong Kong – Hang Seng: UP 1.4% at 25,657.66
• Shanghai – Composite: DOWN 0.5% at 3,793.18
• West Texas Intermediate: UP around 3.8% near $82.25 per barrel
• Brent North Sea Crude: UP around 3.9% near $87.34 per barrel

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