The Albany Gazette - Oil prices surge, stocks slide as Trump says Iran ceasefire over

The latest bout of fighting was sparked by Iranian attacks on ships in the vital Strait of Hormuz shipping route.

Trump said at a NATO summit in Turkey the ceasefire was "over" but left the door open to more talks.

International benchmark Brent North Sea crude jumped more than five percent to around $78 a barrel.

The main US contract, West Texas Intermediate, also rallied five percent.

In Europe, Paris and Frankfurt shed around two percent while London was down nearly 1.5 percent around midday.

"Geopolitical risks are rising" for markets, noted Kathleen Brooks, research director at trading group XTB.

The US launched extensive strikes on Iran this week following attacks on ships in the strait, triggering a wave of reprisals against American bases in the Gulf.

Washington also revoked a temporary sanctions waiver for Iranian oil.

Brooks added that "for the Brent crude oil price to extend gains above $80 per barrel, we would need to see another US naval blockade of the Strait of Hormuz, which would stop Iran from selling its oil and cause a major escalation in tensions".

Equities in Asia also suffered, with the geopolitical tensions coming on top of a retreat from the tech sector on concerns over the eye-watering sums being invested in AI.

Seoul's Kospi -- which has been Asia's poster child for the tech rally -- sank more than five percent and has lost more than 20 percent since hitting a record high last month.

Samsung took another hit following a rout Tuesday that came despite the firm forecasting a roughly 19-fold jump in second-quarter operating profit from a year earlier on the back of strong AI chip demand.

The company and rival SK hynix both tumbled around six percent.

"Investors have been spooked in recent weeks by fears of excessive spending in the AI world and rich valuations in parts of the tech space, causing widespread profit-taking," said Dan Coatsworth, head of markets at AJ Bell.

There were losses also in Tokyo and Shanghai.

However, Hong Kong rose three percent as traders chased beaten-down Chinese tech stocks, with Alibaba piling on more than 12 percent, and JD.com and Tencent each up almost four percent.

The dollar gained against its peers as the prospect of another hit to Middle East oil supplies fuelled concerns that inflation could remain elevated for longer than feared, putting pressure on the Federal Reserve to hike interest rates.

- Key figures around 1100 GMT -

Brent North Sea Crude: UP 5.1 percent at $77.93 a barrel

West Texas Intermediate: UP 5.0 percent at $73.95 a barrel

London - FTSE 100: DOWN 1.4 percent at 10,516.16 points

Paris - CAC 40: DOWN 2.0 percent at 8,265.75

Frankfurt - DAX: DOWN 2.1 percent at 24,929.06

Seoul - Kospi: DOWN 5.4 percent at 7,246.79 (close)

Tokyo - Nikkei 225: DOWN 2.1 percent at 66,819.05 (close)

Hong Kong - Hang Seng Index: UP 3.0 percent at 24,199.46 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,970.88 (close)

New York - Dow: DOWN 0.3 percent at 52,925.15 (close)

Euro/dollar: DOWN at $1.1406 from $1.1415

Pound/dollar: DOWN at $1.3344 from $1.3360

Dollar/yen: UP at 162.49 yen from 162.09 yen on Tuesday

Euro/pound: UP at 85.49 pence from 85.44 pence

(N.Miller--TAG)