Investors faced a volatile start to the week, with market sentiment dampened by escalating tensions surrounding oil and concerns within the artificial intelligence sector. Brent crude, the international benchmark for oil prices, held above $107 per barrel on Tuesday morning, following increased worries about global supply on Monday.
Saudi Arabia has closed its East-West pipeline, an alternative route to the Strait of Hormuz, without specifying when operations will resume. A diplomatic meeting between Iran and Gulf Arab states regarding the situation in Hormuz was also postponed. Iran has claimed a supertanker exploded after striking mines while attempting to enter the Strait of Hormuz.
In the AI sector, investors reacted to warnings from Anthropic chief executive Dario Amodei, who suggested AI companies should "slow the pace" of improving their most powerful models. This call was supported by OpenAI boss Sam Altman and Elon Musk.