Oil Tops $113 as Tech Sell-off Rattles Global Markets

Brent crude oil prices surged past $113 per barrel this Friday. The move comes amid mounting concerns over conflicts involving Iran. West Texas Intermediate also climbed and is currently trading near $100.

The technology sector saw a sharp global decline following a wave of selling in artificial intelligence stocks. The S&P 500 index faced its worst daily performance since July. This climate of uncertainty drove investors to seek refuge in U.S. government bonds.

Volatility also hit the currency market as the Japanese yen experienced rapid fluctuations against the dollar. Inflation in Japan exceeded expectations and strengthened bets on further interest rate hikes by the local central bank.

The crypto asset market felt the impact of the risk-off environment. Bitcoin tested lows below $81,000 before attempting a recovery. Liquidations of leveraged positions totaled $435 million over the last 24 hours.

Sustained increases in energy prices could heighten global inflationary pressure and reduce appetite for risk assets. The rise in oil acts as a stress factor that limits capital flow into speculative investments and puts pressure on the dollar.