Global crude oil prices fell on Monday as investors awaited details of a new US economic pressure campaign against Iran, while Asian stock markets faced headwinds from cooling sentiment in the technology sector.
Oil benchmarks declined by 2.3 percent on Monday, with Brent crude trading at US$92 per barrel, as markets absorbed news of an intensified American economic campaign targeting Iran. US Treasury Secretary Scott Bessent announced he would provide additional details about the initiative during a press conference, with the Trump administration characterizing it as the "most crushing" financial operation ever launched against Tehran. The campaign represents an escalation of pressure on Iran as the Middle East conflict extends beyond six months, though US Vice President JD Vance acknowledged the strategy involves a "delicate dance" given potential Iranian countermeasures against American economic interests.
Asian equity markets reflected broader caution on Monday, with most indices posting declines. South Korea's Kospi fell 1.4 percent following Samsung Electronics' announcement of an US$80 billion share buyback program amid recent market volatility. Both Samsung and competitor SK hynix have experienced significant share price declines after peaking in June on artificial intelligence optimism, though the sector has since faced investor concerns about sustainability. Market watchers are closely monitoring Nvidia's upcoming earnings report this week, as the world's most valuable company faces scrutiny over whether the current AI investment boom can justify the unprecedented scale of capital deployment.
Elsewhere in tech, Chinese giant Alibaba announced plans to raise US$10.2 billion through a new share offering in Hong Kong to fund global AI initiatives, signaling continued confidence in the sector's long-term prospects despite recent market turbulence. Fast-fashion retailer Shein is proceeding with its Hong Kong market debut scheduled for September 1, with valuations approaching US$27 billion. Stock exchanges across the Asia-Pacific region showed mixed results, with Tokyo, Shanghai, Taipei and Wellington declining, while Sydney, Jakarta and Bangkok gained ground.
Investors are also watching this week's Jackson Hole gathering of central bankers and finance officials for clarity on US monetary policy, particularly following Treasury efforts to manage bond yields after the 30-year rate reached levels unseen since 2007.
