The escalation of the US-Iran conflict pushes oil prices close to $100, Asian chip stocks continue to rally with SK Hynix up over 3%, and both gold and silver increase.

The situation in the Middle East has rapidly deteriorated, with Brent crude nearing the $100 mark, while Asian chip stocks have extended their gains, driven by the continued frenzy in AI trading.

On Wednesday, the Korea Composite Index widened its intraday gains to 2%, with both Samsung Electronics and SK Hynix strengthening, following a 1.3% rise in the Philadelphia Semiconductor Index during Tuesday’s US trading session. The MSCI Asia Pacific Index overall rose 0.6%, with the information technology sector making the largest contribution.

According to Xinhua News Agency, the US military destroyed five Iranian oil tankers on Tuesday in retaliation for the Islamic Revolutionary Guard Corps launching ballistic missiles at US warships twice over the past two days. As a result, Brent crude once surged 1.8% to $99.67 per barrel, with its cumulative gains this year exceeding 60%.

Chip stocks continue their recent strong performance, becoming the main highlight of Asia-Pacific markets.

Wallstreetcn reported that Qualcomm announced a partnership with Amazon to jointly develop custom chips for AWS artificial intelligence infrastructure, spanning multiple generations of products. This includes chips for running AI services as well as those responsible for connecting internal computer components. Qualcomm stated that orders for these relevant chips could total up to $60 billion over the next decade.

AI investment enthusiasm continued into early Wednesday trading, with the Korea Composite Index at one point rising more than 2% intraday, while the MSCI Asia Pacific Index as a whole rose 0.6%, with the information technology sector making the largest contribution.

Both SK Hynix and Samsung Electronics posted gains, with the former at one point rising nearly 5%.

The Nikkei 225 and TOPIX both jumped then retreated, with early session gains falling back to 0.3%, while Australia’s S&P/ASX 200 dropped 0.3%.

The energy market remains a key focus for the day.

According to Xinhua News Agency, US forces destroyed five Iranian oil tankers on Tuesday in retaliation for the Islamic Revolutionary Guard Corps launching ballistic missiles at US warships twice over the past two days. In response, Iran launched missiles at Jordan and, through a statement from the Islamic Revolutionary Guard Corps broadcast on Iranian state television, warned all oil tanker crews near ports in Kuwait and Bahrain to abandon ship immediately.

Brent crude once rose 1.8% to $99.67 per barrel, while WTI crude rose more than 1.3% above $94 per barrel. The ongoing risk of attacks on energy infrastructure has made the supply outlook for the Strait of Hormuz, a critical global oil export route, even more uncertain.

Darrell Fletcher, Managing Director of Commodities at Bannockburn Capital Markets, said that the “path of least resistance for oil prices is to move strongly and steadily higher.” He noted:

Product fundamentals remain bullish, with global stockpiles and reserves continuing to decline. As usual, the US and Iran will continue retaliating and issuing warnings.

Rising oil prices are amplifying market concerns over inflation and the trajectory of interest rates. The 10-year US Treasury yield broke above the critical 4.8% benchmark on Tuesday, and remained at that level in early Asian trading.

In the foreign exchange market, the yen strengthened for a third consecutive day, rising to around 153.4 against the US dollar. The Bloomberg Dollar Spot Index slipped 0.1%.

Wallstreetcn reported that US Treasury Secretary Besant openly challenged short sellers in the market, claiming to have insider information when making market judgments, which to some extent boosted the yen.

Spot gold rose 0.54% to $4,372.77 per ounce; Bitcoin edged up 0.4% to $78,803.

Spot silver once surged over 1% before pulling back to a gain of 0.8%, remaining within a triangle consolidation range.