Oil prices jump more than 2% after US strikes on Iran, while world shares retreat 

Shares fell yesterday in Europe and Asia and oil prices surged more than 2% after the U.S. launched strikes on Iran following attacks on three ships in the Strait of Hormuz.

Brent crude, the international standard, jumped 2.2% to $75.80 a barrel, while U.S. benchmark crude added 2.1% to $71.94 a barrel. Both had declined recently to around the levels they were at before the war with Iran began in late February.

The flareups despite commitments to seek a peaceful resolution to the conflict have added to uncertainty over oil prices after they fell from their peak well above $100 during the war. They also have coincided with waves of worries that the craze for artificial intelligence-related shares has pushed prices beyond the productivity gains and profits likely to result from massive investments in computer chip production capacity and data centers.

“As such, geopolitical headlines will likely determine market sentiment over the coming hours. A further deterioration in the situation could weigh further on equity valuations along with rising stress in technology,” Ipek Ozkardeskaya of Swissquote said in a commentary.