Nasdaq logs worst week since June as oil tops $110 amid Hormuz attacks

The Nasdaq Composite closed its worst week since June, falling 2.14% on Friday as investors rotated out of the artificial intelligence trade and geopolitical risks intensified. The S&P 500 dropped 1.09% and the Dow Jones Industrial Average declined 0.34%, with semiconductor stocks leading the broader market slide due to concerns over competition from China.

Oil prices surged in tandem with the equity selloff. Brent crude, the international benchmark, traded around $110 a barrel, while West Texas Intermediate, the U.S. benchmark, held above $100 a barrel. The price increase reflects escalating tensions in the Middle East and between Russia and Ukraine, where both Kyiv and Moscow are targeting each other's energy grids.

In the Strait of Hormuz, at least nine tankers and cargo ships were attacked over the past week. According to Kpler, crude exports have pulled back to about 70% of prewar levels seen in September. Ali Ozmaei, chief of the Islamic Revolutionary Guard Corps, stated in a televised interview that Tehran is "impatient to sink American warships." He added that the group is waiting for U.S. vessels to reach the strait's entrance so they can destroy them, claiming they are counting down every moment until it happens.

Tensions between the United States and Ukraine also contributed to the market environment. President Donald Trump criticized Kyiv's decision to resume attacks on Russian refineries, calling it a "disgrace." In a Thursday interview, Trump said, "There's plenty of other targets; they don't have to hit," and described Ukrainian President Volodymyr Zelenskyy as "more difficult to deal with than (Russian President Vladimir) Putin." Trump noted that he finds Zelenskyy "not a good guy for us to deal with," though he suggested both sides would like the conflict to end.

Zelenskyy responded by attributing the resumed attacks to Moscow's failure to abide by an energy ceasefire declared by Trump over the weekend. In a Wednesday interview with British commentator Piers Morgan, Zelenskyy said he felt "betrayed" by his dealings with Putin, including a deal to release hundreds of barrels of diesel amid high global prices. Zelenskyy claimed that lifting sanctions would allow Russia to press on with its invasion. Despite his personal feelings, Zelenskyy emphasized that Ukraine's relationship with the United States was paramount, stating, "Our country has to survive, and we count on our real partners, strategic partners, the United States and President Trump."