Oil prices rose for a third consecutive day on Wednesday as tensions in the Gulf escalated following a stalemate in US-Iran peace talks. Brent crude futures increased by 1% to $94.74 per barrel.
The dollar approached the 160 yen barrier, only to pause as traders became cautious of potential Japanese intervention. S&P 500 futures remained flat, while European futures dipped 0.1%. Asian markets, however, continued to soar, with stock indexes reaching record highs in Taiwan and Japan.
The US military reported that Iranian missile attacks on Bahrain, Kuwait, and other regional targets were thwarted or failed, but diplomacy between Washington and Tehran made little progress. Iran and the US had announced a tentative deal to halt the war last week, but the two sides have yet to finalize an agreement.
Cryptocurrencies plummeted, with bitcoin falling nearly 10% in three sessions and hitting a two-month low of $66,123. The decline was attributed to selling by big bitcoin holders and speculation that some investors were selling to free up cash for SpaceX's upcoming initial public offering.
The artificial intelligence theme remained resilient, with tech stocks led by AI experiencing small gains on Tuesday. Shares in Marvell Technology soared 32.5% to a record high after Nvidia boss Jensen Huang called the chipmaker the next trillion-dollar company.
US labour data will be in focus, with the services ISM and private payrolls figures due later on Wednesday, ahead of the labour market data on Friday. The data is expected to show a resilient job market, which could bolster the view that the US Fed may raise interest rates down the track.
