Markets Stay Cautious as Iran Tensions, AI Deals and Intel Share Sale Drive Trading

Oil prices rise as hopes for a US-Iran deal fade, while major AI and semiconductor developments create sharp moves in individual shares

Global markets remained cautious as investors reacted to fresh tensions between the United States and Iran, higher oil prices and major developments in the technology sector.

US stock futures were broadly flat, with Dow futures down around 0.1%, while S&P 500 and Nasdaq 100 futures were little changed. Investors were also waiting for important inflation data later in the week.

The main concern remains the Strait of Hormuz, which is still effectively closed. Before the war, roughly one-fifth of the world’s oil and liquefied natural gas passed through the route.

Trump Rejects Iran Reparation Demands

Hopes for a quick peace deal weakened after President Donald Trump rejected Iran’s demand for war reparations.

Trump said the demand had not previously been raised in negotiations and argued that Iran should instead pay compensation for damage caused during previous conflicts.

With little sign of an immediate breakthrough, Brent crude rose by around 1.8% to $89.34 a barrel.

Higher oil prices matter to investors because they can push up transport and manufacturing costs, increase inflation and make interest-rate cuts less likely.

Nvidia AI Deal Raises New Questions

Nvidia confirmed a major AI infrastructure agreement involving Apollo, BlackRock, Goldman Sachs and KKR.

The deal aims to help mobilise more than $500 billion in third-party capital to build infrastructure needed for artificial intelligence.

However, Nvidia shares fell by more than 2% after the announcement.

The market reaction suggests investors remain concerned about the huge amount of money being invested in AI and whether future returns will justify current spending levels.

Riot Platforms Jumps on $9.1 Billion Anthropic Deal

Riot Platforms was one of the strongest movers after reports linked the company to a major cloud computing deal with Anthropic.

The agreement could generate around $9.1 billion in revenue and potentially as much as $16.1 billion if extension options are used.

Riot shares jumped more than 20% in after-hours trading.

This highlights how former cryptocurrency mining companies are increasingly trying to benefit from demand for AI computing and data centres.

Intel Raises $20 Billion

Intel raised $20 billion through an enlarged share offering priced at $95 per share.

The chipmaker originally planned to raise $15 billion but increased the size of the offering as its share price recovered.

Intel shares fell by more than 4%, partly because issuing new shares can dilute the value of existing shareholders’ stakes.

What This Could Mean for Investors and Traders

Several themes could drive markets in the short term:

• Oil and energy shares may benefit if the Iran conflict continues
• Airlines and transport companies could struggle with higher fuel costs
• Higher oil prices could keep inflation elevated and delay interest-rate cuts
• Nvidia and other AI shares may become more volatile as investors question the scale of AI spending
• Riot Platforms could remain volatile after its large AI infrastructure deal
• Intel could face short-term pressure from shareholder dilution, although the extra capital may support future expansion
• Bond yields may rise if inflation concerns increase

For traders, geopolitical headlines around Iran and the Strait of Hormuz remain one of the biggest immediate market risks. For investors, AI spending, semiconductor expansion and inflation will be important themes to watch over the coming weeks.

Sources: (Investing.com, Reuters.com)