Oil Prices Retreat as Mideast Rhetoric Shifts

West Texas Intermediate futures dropped 1.4% to $90.24 a barrel, while Brent crude slid to $102.76, according to ICE data. Despite the dip, analysts remain cautious about the long-term outlook. Linh Tran of XS.com noted that market stabilization requires tangible progress in maritime safety and formal negotiations rather than just rhetoric. Meanwhile, the IEA continues to manage supply tightness, with approximately 100 million barrels of pledged reserves yet to reach the global market, a factor that could influence pricing in the coming weeks.

Regional equity markets showed uneven results as investors weighed geopolitical shifts against sector-specific headwinds. While Hong Kong’s Hang Seng Index rose 1.3%, Japanese and Chinese indices retreated. Tech stocks faced particular pressure, with AI and semiconductor firms declining amid renewed skepticism over the sustainability of infrastructure spending. Bernstein analysts pointed to mounting regulatory guardrails and rising borrowing costs as potential hurdles for the sector. Sentiment was further dampened by reports that the U.S. administration may restrict tech companies from sponsoring permanent residency for foreign workers, impacting stocks such as Shanghai Iluvatar CoreX Semiconductor and MetaX Integrated Circuits.