Asian shares fall as AI sell-off hits, Brent oil nears $100

Asian stock markets tumbled on Monday, with technology and AI-related shares leading the decline, as Brent crude oil prices hovered near $100 per barrel. The sell-off reflected growing investor anxiety over the economic impact of sustained high energy costs, exacerbated by escalating geopolitical tensions in the Middle East.

The downturn affected major indices across the region, hitting shares of companies tied to artificial intelligence and other tech sectors particularly hard. Investors are concerned that prolonged expensive oil could fuel inflation, potentially delaying interest rate cuts by central banks and squeezing corporate profits.

Brent crude, the international benchmark, traded close to $100 a barrel, a level not seen in months. This surge follows a dangerous new phase of conflict that analysts say is breaking all the oil market's constraints, according to a CNN report. The New York Times noted that oil prices remain elevated as the conflict with Iran drags on, adding to supply fears.

Despite the recent stock market jitters, some analysts suggest that $100 oil alone is not necessarily a major threat to equities, as Barron's reported. However, they warn there is a panic point if prices climb much higher. CNBC quoted a market observer saying it is "too hard to ignore $100 oil," indicating that the stock market can no longer brush off the war's impact on energy costs.

Looking ahead, investors will be watching for further developments in the Middle East and any policy responses from central banks. The sustainability of oil prices above $100 will be a key factor in determining whether the current sell-off deepens or stabilizes.