Oil rises, bond yields weigh on stocks

Global stock markets showed mixed performance on Monday as investors weighed rising borrowing costs and renewed geopolitical tensions in the Middle East, while oil prices climbed sharply following fresh pressure from US President Donald Trump on Iran.

Oil prices briefly dipped after Iranian media reports claimed US officials had agreed to suspend sanctions on Iranian crude exports while negotiations over the regional conflict continue. However, the decline was short-lived as uncertainty surrounding the reports and ongoing tensions pushed prices higher again.

Analysts said traders reacted cautiously after Trump warned Tehran that time was running out to reach an agreement.

The conflict has intensified concerns over the Strait of Hormuz, a critical global shipping route through which around 20 percent of the world’s oil exports pass. Disruptions and threats linked to the waterway have contributed to rising energy prices and increased market volatility.

By late trading, Brent crude rose 1.3 percent to $110.71 per barrel, while US West Texas Intermediate gained 1.7 percent to reach $102.71 per barrel.

On S&P 500 and Nasdaq Composite, technology shares weakened as investors monitored rising government bond yields and concerns over inflation and economic growth. The Dow Jones Industrial Average slipped 0.2 percent, while the Nasdaq fell 0.9 percent.

European markets closed higher, with Germany’s DAX gaining 1.5 percent and London’s FTSE 100 rising 1.3 percent.

Investors are also closely watching quarterly earnings from NVIDIA due later this week, as markets assess whether massive global spending on artificial intelligence infrastructure can continue to support the ongoing technology rally.

In Asia, shares in Japanese chipmaker Kioxia surged 16 percent after the company reported strong quarterly results driven by growing demand for AI-related memory chips.

Kioxia said it expects operating profit of 1.3 trillion yen ($8.2 billion) for the April-June quarter, citing booming global demand linked to AI data centres and advanced computing technologies.