Oil Nears $110, Treasury Yields Clip 5% as AI Fears Weigh on Sentiment

Oil hovered near US$110 as markets turned risk-off, with the US 10-year Treasury yield briefly clipping above 5% amid AI-related worries. Brent crude moved higher toward US$110/barrel during Asia and the European morning, helped by attacks on shipping in the Strait of Hormuz and a drone strike that led Saudi Arabia to temporarily shut a pipeline—factors that also feed inflation concerns. The piece flags US$108.40 on Brent’s daily chart as key resistance, with a clean break opening the way to May highs of US$112.72 and possibly US$119.50. In rates, rising energy costs, inflation fears, heavy government debt, corporate debt and bets on Fed hikes pushed yields up. Tech stocks fell after Anthropic CEO Dario Amodei urged AI firms to slow frontier development, with Sam Altman agreeing; the Nasdaq ended down 0.8%.