Middle East Tensions Support Oil as Tech Stocks & Dollar React

Global markets showed mixed reactions amid renewed Middle East tensions, with oil prices stabilising, US equity futures wavering, and the US dollar facing pressure, while major tech developments from ASML and Amazon drew investor attention.

TL;DR

• Middle East tensions helped stabilise oil prices after recent declines, while US stock futures for the S&P 500 and NASDAQ 100 traded cautiously amid mixed geopolitical signals.

• The US dollar weakened, with analysts pointing to potential further downside. 

• In tech, ASML boosted its 2026 outlook on strong AI demand, while Amazon announced an $11.6 billion deal with Globalstar to expand its satellite capabilities.

Key Developments

Oil prices steadied after recent declines as geopolitical uncertainty in the Middle East continued to influence supply expectations. Reports indicated that while prices had previously slumped, they found support amid concerns over potential disruptions, even as discussions around restarting production weighed on the market. 

US stock index futures, including those tied to the S&P 500 and NASDAQ 100, hovered with limited direction. Market sentiment was influenced by renewed hopes for diplomatic engagement between the US and Iran, which tempered some geopolitical risk premium but left investors cautious. 

Meanwhile, the US dollar showed signs of weakness, with analysts pointing to technical levels suggesting further downside potential. The softer dollar comes amid shifting expectations around monetary policy and global risk sentiment, impacting currency markets broadly. (Source: Yahoo Finance)

Tech Sector in Focus

In the technology sector, Dutch semiconductor equipment maker ASML raised its 2026 outlook, citing stronger-than-expected demand driven by artificial intelligence developments. The company highlighted robust order flows linked to AI chip production, reinforcing optimism around long-term growth in the semiconductor industry.

Amazon also remained in focus after announcing an $11.6 billion deal with Globalstar to expand its satellite and connectivity capabilities. The move reflects the company’s continued investment in infrastructure and technology to support its broader ecosystem, including communications and cloud services. (Source: Stonex)

Additional Context

The combination of geopolitical developments, currency fluctuations, and corporate announcements underscores the interconnected nature of global markets. Oil price movements remain closely tied to Middle East dynamics, while US indices continue to respond to both macroeconomic signals and geopolitical headlines. At the same time, major technology firms are shaping market narratives through strategic investments and forward-looking guidance.

Conclusion

Markets remain sensitive to developments in the Middle East, with oil prices stabilising amid uncertainty, US indices showing cautious movement, and the dollar weakening. Alongside these macro factors, corporate updates from ASML and Amazon highlight ongoing momentum in the technology sector, particularly in areas linked to AI and infrastructure expansion. 

*Past performance does not guarantee future results. The above is for marketing and general informational purposes only, and are only projections and should not be taken as investment research, investment advice or a personal recommendation.