Global Markets Rise on Tech Rally as Oil Slips and Iran Tensions Keep Traders on Edge

World shares climb higher on Friday, lifted largely by strong buying in technology-related stocks, even as investors kept a nervous watch on developments in the Iran war. At the same time, oil prices slipped, reflecting the delicate balance between rising geopolitical risk and shifting energy supply dynamics.

Tech Buying Powers Global Gains

The broad rise in world shares came as traders leaned into technology names, a sector that continued to show resilience despite ongoing uncertainty. While gains were modest in some regions, the overall tone across major markets pointed to cautious optimism.

The mood, however, remained shadowed by geopolitics. Tensions between Iran and the United States have escalated after President Donald Trump declared that the Iran war ceasefire agreement was “over.” The situation grew more volatile as the two nations exchanged attacks, keeping markets alert to any further escalation.

A Mixed Picture in Europe

Early European trading painted a somewhat uneven picture, with only slight movements across the region’s major indexes:

• Britain’s FTSE 100 edged up 0.1% to 10,478.98
• France’s CAC 40 slipped 0.1% to 8,322.31
• Germany’s DAX also gave up 0.1% to 25,082.58

Across the Atlantic, U.S. futures offered similarly muted signals. Futures for the S&P 500 dipped 0.1%, while those tied to the Dow Jones Industrial Average nudged 0.1% higher.

Asian Markets Lead the Charge

The strongest momentum came out of Asia, where several major indexes posted solid gains.

South Korea’s Kospi stood out, climbing 2.5% to 7,475.94 as it clawed back some of the losses suffered earlier in the week. Notably, shares in memory chipmaker SK Hynix, set to make its Nasdaq debut in New York on Friday, slipped 0.3% in Seoul despite the broader rally.

Japan’s markets also performed well. Tokyo’s Nikkei 225 rose 1.2% to 68,557.73, powered in part by standout performers:

• SoftBank Group, a key investor in OpenAI, surged 10.7%
• Chip equipment maker Tokyo Electron added 2.7%

India’s Sensex joined the upward move as well, rising 1.2%.

Oil Prices Slip Amid Supply Pressure

While equities advanced, oil prices moved in the opposite direction, swinging back and forth before settling lower. Global oil supplies remained under strain, largely because only a limited number of vessels have been able to cross the Strait of Hormuz, a vital waterway for energy transport.

The price movements reflected this ongoing tension:

• Brent crude, the international benchmark, fell 0.5% to $75.94 per barrel
• U.S. benchmark crude shed 0.5% to $71.71 per barrel

For context, Brent had been trading near $72 a barrel before the war began in late February, underscoring how the conflict has reshaped the energy landscape.

Wall Street’s Strong Thursday Sets the Tone

Friday’s gains built on a positive session the day before. On Thursday, Wall Street’s benchmark S&P 500 index rose 0.8%, while the Dow picked up 0.3%. The technology-heavy Nasdaq composite led the way, climbing 1.3% to 26,206.89.

Semiconductor stocks were the clear standouts. Micron Technology jumped 4.5% after announcing plans to increase its U.S. investments, pointing to surging demand for memory in the AI era. Other chip names followed suit:

• AMD (Advanced Micro Devices) surged 5.7%
• Marvell Technology rose 5%
• ON Semiconductor added 4.4%

The rally reinforced just how central the semiconductor sector has become to overall market sentiment, particularly amid the ongoing AI boom.

Currency Moves and the Japanese Yen

In currency markets, the U.S. dollar weakened against the Japanese yen, falling to 161.71 yen from 162.37 yen. The euro, meanwhile, ticked slightly higher, trading at $1.1432 compared with $1.1430.

The yen’s strength followed a notable policy signal from Japan. Finance Minister Satsuki Katayama told a parliamentary committee that the government intends to encourage large pension funds to invest more heavily in domestic, yen-denominated assets, a move that appeared to support the currency.

The Bigger Picture

Friday’s market action reflects a familiar tension in today’s global economy: enthusiasm for technology and AI-driven growth pulling markets upward, while geopolitical risks tied to the Iran war inject uncertainty at every turn. For now, investors appear willing to reward strength in the tech and semiconductor sectors, but the situation in the Middle East remains a wildcard that could shift sentiment quickly.

As traders head into the days ahead, the interplay between rising conflict, oil supply concerns, and the resilience of technology stocks will likely continue to define the direction of global markets.