World shares are mixed and oil prices fall, markets in Asia skid in
sell-off of AI-related shares
[July 24, 2026] By
ELAINE KURTENBACH
BANGKOK (AP) — World shares were mixed and markets in Asia skidded
Friday, after Brent crude shot to its highest price since May as heavy
fighting in the Middle East again threatened to slow the global flow of
oil and gas.
U.S. futures edged higher after tumbles for two of Wall Street’s most
influential companies, Alphabet and Tesla, yanked U.S. stocks to their
worst loss in a month.
Looming over markets: The deepening crisis in the Middle East, worries
over the a potential bubble in investments in artificial intelligence
and another round of tariff hikes by U.S. President Donald Trump.
The U.S. is imposing taxes of 10% to 12.5% on imports from 60 trading
partners, accounting for 99% of U.S. imports, saying they failed to
fully enforce bans on goods produced by forced labor, the Trump
administration said Thursday.
That move came just as the clock was running out Friday on stopgap
levies the president imposed after a stinging defeat for other such
tariffs at the Supreme Court.
Such uncertainties have helped push the U.S. dollar to a 40-year high
against the Japanese yen. A dollar bought 163.79 yen early Friday, down
from 163.85 yen and a level last seen in 1986.
The euro rose to $1.1382 from $1.1377.
In early European trading, Britain's FTSE 100 was up 0.5% to 10,690.09.
France's CAC 40 climbed 0.4% to 8,331.18, while Germany's DAX gained
0.8% to 24,952.52.
In Asia, South Korea's Kospi stuttered lower, falling 5.7% to 6,690.62.
Samsung Electronics sank 7.6% and shares in computer chipmaker SK Hynix
dropped 8.3%.
In Tokyo, the Nikkei 225 declined 2.7% to 64,611.15, led by losses for
technology companies. SoftBank Group, which has massive investments in
artificial intelligence, tumbled 7.1%.
Hong Kong's Hang Seng dropped 1% to 24,963.23, while the Shanghai
Composite index shed 1.6% to 3,814.20.
In Australia, the S&P/ASX 200 lost 0.8% to 8,772.30.
Taiwan's Taiex lost 2.7%, while India's Sensex traded 0.3% lower.
On Thursday, the price of Brent crude shot to as high as $102 per barrel
and settled at $100.69 per barrel, up 7%. Early Friday, it was down 3.1%
at $97.58 per barrel. Before the Iran war began in late February it was
trading around $72 per barrel.
U.S. benchmark crude slipped 2.7% to $89.71 per barrel.
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An employee walks past near the screens showing the Korea Composite
Stock Price Index (KOSPI) and the foreign exchange rate between U.S.
dollar and South Korean won at a dealing room of Hana Bank in Seoul,
South Korea, Friday, July 24, 2026. (AP Photo/Lee Jin-man)
 The cause for the latest spike in
prices: attacks on two Saudi oil tankers in the Red Sea. That
threatens another avenue that oil companies use to move their crude
from the Middle East to customers worldwide, along with the Strait
of Hormuz.
Underscoring the importance of the sea route for the economy, Trump
threatened “major military punishment” against the Houthi rebels in
Yemen, who are backed by Iran, if they keep attacking ships.
U.S. stocks fell under the pressure of rising oil prices, which
raise costs for businesses and cut into their customers’ ability to
spend.
The S&P 500 fell 1.2% and is on track for its first back-to-back
weekly loss since March. The Dow Jones Industrial Average dropped
506 points, or 1%, and the Nasdaq composite sank 2.2%.
Higher inflation could push the Federal Reserve and other central
banks to raise interest rates, which would slow economies and
undercut prices for stocks and other investments.
The European Central Bank held its main interest rates steady at its
meeting Thursday.
Gasoline prices tend to follow oil prices higher, and a gallon of
regular costs an average of $4.09 across the United States,
according to AAA. That is still below highs of roughly $4.56 in May,
but it was at just $3.93 a month ago.
Tesla tumbled 14.5% after Elon Musk’s electric-vehicle company
reported a weaker profit for the latest quarter than analysts
expected. Because Tesla one of the largest stocks in the S&P 500 by
market value, its stock has more influence on the index than nearly
every other.
One of the few that is larger is Alphabet. Its stock fell 7.1% even
though the parent company of Google delivered stronger profit and
revenue than analysts expected.
Investors focused instead on how much Alphabet is planning to spend
on AI after the company raised its forecast for capital spending.
___
Associated Press Business Writers Chan Ho-him in Hong Kong, Matt Ott
in Washington and Stan Choe in New York contributed to this report.
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