Brent crude slides below $75 as tech shares weaken globally

Oil prices plummeted Wednesday, hitting their lowest point since the US-Iran war began in February, as crude futures fell below $75 a barrel. This decline offers relief to global consumers, provided the oil industry can quickly compensate for months of supply disruptions.

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The carnage continues in oil prices.

Maritime tracking data shows a significant increase in commodity ship transits through the Strait of Hormuz, with 25 on Tuesday and 17 so far on Wednesday. Normally, about 120 ships pass through daily, carrying a fifth of global oil and LNG exports. The US has pledged to maintain free navigation in the vital waterway, but Iran insists on charging "maritime service fees."

On Wall Street, the Nasdaq extended its decline for a third straight session, reflecting investor concerns about the high valuations of semiconductor and artificial intelligence-related companies. "Investors are continuing to question AI valuations," said Chris Beauchamp, chief market analyst at IG, noting a potential rotation from tech to underperforming sectors.

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This delivers relief for consumers around the globe, assuming the oil industry can scramble to fill the gap left by months of disruption.

In contrast, the Dow Jones Industrial Average saw gains. European markets were mixed, with Frankfurt pulled down by a significant drop in defense contractor Rheinmetall after Germany canceled a major frigate construction plan. The dollar strengthened, driven by the Federal Reserve's signal to prioritize inflation control, potentially leading to interest rate hikes as early as September.

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Investors are continuing to question AI valuations.