Oil Prices Near Prewar Levels as Tech Stocks Slip Amid AI Concerns

Brent crude futures declined 4.3% to $73.74 a barrel, approaching the $72.48 level recorded before the Iran-related conflict began. Improved tanker traffic through the Strait of Hormuz contributed to the price drop.

U.S. equity markets gave back early gains, with the Nasdaq Composite slipping 0.6% after a 4% fall over the previous two days. The Dow Jones Industrial Average rose 0.5%, while the S&P 500 edged down 0.3%.

AI-related stocks remained under pressure. Cerebras Systems warned that it expects to continue operating at a loss, prompting a sell-off, and the PHLX Semiconductor Index fell nearly 2% after an 8% decline the day before. South Korean chipmaker SK Hynix announced plans for a $29 billion U.S. listing to gauge investor interest, and Micron Technology, down another 4% following a 13% slide, is set to report earnings after market close.

The U.S. dollar continued to strengthen amid expectations of further Federal Reserve rate hikes, pushing the Japanese yen toward a multidecade low against the greenback. Bitcoin fell below the $60,000 mark.