Oil Surges Past $100 as Strait of Hormuz Tensions Offset AI Optimism

U.S. equity futures remained mixed on Friday as investors balanced escalating geopolitical risks in the Middle East against strong corporate earnings in the semiconductor sector. While tech optimism provided some support, the broader market is grappling with the implications of a crippled energy transit route. Oil prices have breached the $100 mark, with Brent crude rising 1.2% to $106.30 and U.S. West Texas Intermediate increasing 1.0% to $96.77. The surge is driven by continued disruptions in the Strait of Hormuz, a critical transit route for approximately one-fifth of global oil supplies. Despite an open-ended ceasefire between Washington and Tehran, the strait remains largely closed to tanker traffic, with reports of vessel seizures and naval tensions. The energy crisis is compounded by uncertainty surrounding a separate ceasefire between Israel and Lebanon, which remains fragile due to the absence of Hezbollah officials from key discussions. The International Energy Agency has characterized the current disruption as the most significant energy security threat in history, urging governments to seek alternative energy sources immediately. In contrast to these macro headwinds, the semiconductor industry saw significant gains. Intel shares surged more than 21% in extended trading following an optimistic revenue forecast tied to AI-focused data centers. This follows a similar trend from Texas Instruments, which saw shares jump over 19% after reporting results that exceeded expectations for analog chips used in AI infrastructure. Market analysts warn that persistent energy shocks could broaden inflationary pressures, potentially forcing central banks to reconsider interest rate trajectories. While AI infrastructure investment provides a floor for tech equities, the overarching concern for global markets remains the stability of energy flows and the durability of Middle Eastern ceasefires.