Middle East supply fears lift oil prices as tech stocks slide

Oil prices have risen due to concerns over supply in the Middle East. Saudi Arabia closed a key pipeline, the East-West pipeline, which has intensified supply concerns. This pipeline is a vital bypass route for Saudi oil exports during disruptions through the Strait of Hormuz.

The shutdown of the 7 million barrel per day pipeline has led to an increase in oil prices, with Brent up around 3%. According to ING analysts, there are elevated geopolitical risks around the Strait of Hormuz and tight middle distillate markets. The International Energy Agency (IEA) has made aggressive cuts to its demand forecasts.

Tech stocks have slid amid concerns over AI development. The situation in the Middle East remains fluid, with sizeable volumes of oil still moving through the Strait of Hormuz.

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