Shares skid, bond yields rise as Gulf conflict sends oil surging

By Wayne Cole and Stefano Rebaudo

July 13 (Reuters) - Global stocks fell and authorities enslaved yields roseate connected Monday arsenic investors grappled with concerns implicit a caller escalation successful the Middle East struggle and valuations successful AI-related stocks.

U.S. and Iranian forces renewed exchanges of dense rocket and drone assaults, with Tehran saying ‌it had again closed the captious Strait of Hormuz.

The dollar roseate with enslaved yields arsenic investors accrued the likelihood of a hike successful involvement rates from ‌the Federal Reserve and different cardinal banks, conscionable a time earlier Chair Kevin Warsh is owed to look Congress for the archetypal clip successful his caller role.

Brent crude climbed 3.8% to $78.86 a barrel, up from the caller trough ​of $70.14, portion U.S. crude added 4.11% to $74.36 a barrel. [O/R]

U.S. officials said astir 20 vessels had been escorted done the strait successful the erstwhile 24 hours, though vessel tracking sites showed small postulation moving.

"Short term, we inactive stay optimistic that we could person a fudge oregon a spot that would alteration lipid to travel done and enactment a lid connected lipid prices. (U.S. President Donald) Trump is constrained owed to mid-term elections and the prospects of losing the Senate, arsenic good arsenic the House," said Mohit Kumar, an economist astatine Jefferies.

"He (Trump) would beryllium overmuch much amenable to immoderate ‌version of a woody earlier mid-terms to support lipid prices successful ⁠check," helium added.

US INFLATION DUE ON TUESDAY

Inflation figures for June connected Tuesday could amusement immoderate cooling successful the header complaint of 4.2% arsenic gasoline prices decline, though immoderate of that volition reverse present that lipid is rising anew.

MSCI's main satellite stocks scale <.MIWD00000PUS> fell 0.38%. Europe's STOXX 600 .STOXX was ⁠down 0.12%, with tech stocks falling 1.1%.

Nasdaq futures dropped 1.20% and S&P 500 futures were down 0.40%. Japan's Nikkei <.N225> fell 1.9%.

South Korea's formerly red-hot KOSPI sank 7.6%, having already mislaid astir 8% past week, arsenic leveraged bets connected semiconductor shares came nether pressure. The marketplace has emerged arsenic a cardinal planetary barometer for chip-sector sentiment and further losses could ripple retired much broadly.

South Korean chipmaker SK Hynix's ​U.S.-listed ​shares jumped astir 14% successful their Nasdaq debut connected Friday.

Chip elephantine Taiwan Semiconductor Manufacturing Co. reports results ​on Thursday and different grounds nett is expected.

"All eyes connected the AI ‌capex trajectory: rising concerns astir the sustainability of the AI capex roar look to person been the main catalyst for the momentum wobble," BofA said, adding that the slope remained positioned for a continued momentum reversal.