Global investors appear to be prioritizing artificial intelligence opportunities over concerns about oil supply disruptions stemming from ongoing Middle East conflicts.
Market watchers suggest that silence from recent Gulf peace negotiations may be viewed positively by traders. President Trump had indicated he would meet last Friday to determine whether to extend a ceasefire agreement, but no announcements have emerged since that time.
Defense Secretary Hegseth recently stated that the United States might resume military action against Iran without a satisfactory agreement. Weekend reports confirmed U.S. forces conducted strikes on Iranian positions, while Iran reported hitting an air base it claims was used in American operations. Kuwaiti defense systems were also said to be intercepting incoming missiles and drones.
Maritime traffic through the Strait of Hormuz has dropped dramatically, with only eight ships departing on May 30, including just two oil tankers. Before the conflict, approximately 136 vessels passed through daily.
Energy market experts have long warned that global oil reserves could face serious shortages by mid-June, yet Brent crude remains below $100 per barrel despite gaining 2.5% to reach $93.40.
Asian financial markets continue their artificial intelligence-driven rally, seemingly unconcerned about energy supply issues. South Korea’s primary stock index soared 28% during May, while Taiwan gained 15% and Japan’s Nikkei rose 12%. Samsung Electronics alone jumped 10% on Monday as the company started delivering advanced, high-speed computer chips.
South Korea’s remarkable trade figures highlight the technology sector’s explosive growth, with exports climbing 53% year-over-year in May to nearly $88 billion. Semiconductor shipments increased 169% while computer exports surged 291%.
Despite these strong export numbers, the Korean currency remains near historic lows, indicating that dollar revenues are staying in U.S. currency rather than being converted. Much of these funds likely flow into Treasury securities, meaning the AI expansion indirectly supports American government financing.
The head of Nvidia is scheduled to open the Computex technology conference in Taipei on Monday with an artificial intelligence presentation. The executive is expected to showcase the company’s newest offerings and announce significant investment plans for Taiwan.
Several economic indicators could impact Monday’s trading sessions, including European Union unemployment data for April, manufacturing surveys, and German retail sales figures. American markets will watch for the ISM manufacturing report for May and purchasing managers’ index data.
