Stock markets fall and oil jumps as Middle East conflict intensifies and AI boom falters

By Graeme Wearden • June 8, 2026 • Business

Rolling coverage of the latest economic and financial news

Major chipmakers led the slump on South Korea’s stock market today. Samsung Electronics are down 9.2%, and SK Hynix has dropped by 6.4%, helping to pull the KOSPI index down by over 8%. That slump tripping circuit breakers on the Seoul stock market. Reuters has the details: Circuit breakers were activated at 0003 GMT, halting trading for 20 minutes for the first time in three months. It was the third time they were triggered this year, and the ninth in history. The KOSPI had surged through most of 2026, as the AI boom pushed up the value of South Korea’s chipmakers. The oil price is climbing back towards the $100 a barrel milestone, after new missile strikes in the Middle East today. Brent crude, the international benchmark, has jumped by 4.8% to $97.60 a barrel, after Iran launched missiles at Israel on Sunday in response to Israeli strikes on Beirut’s southern suburbs. With the fragile ceasefire in the Middle East shattering, hopes that the strait of Hormuz could be reopened, allowing energy flows from the region to resume, are being dashed. Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. Stock markets across Asia-Pacific countries are in retreat today, as investors fear a rise in US interest rates, renewed conflict in the Middle East, and an end to the AI boom. Major bourses are all in the red; South Korea’s KOSPI index fell by amost 9% at one point, forcing trading to be briefly suspended, while Japan’s Nikkei 225 index is 3% lower. The sell-off followed a painful Friday on Wall Street, where the S&P 500 fell by 2.64%. Friday’s drop was triggered by a surprisingly strong US employment report, which left many traders concluding that the next move in US interest rates will be up, not down. Technology stocks have also been pummelled in recent days, on fears that the AI race is turning into a battle over who can raise, and spend, the most money, as ChatGPT and Anthropic prepare to float on the stock market. Add in renewed conflict in the Middle East today, and it’s a recipe for more losses across global markets… Kyle Rodda, senior financial market analyst at Capital.com, explains: Things could get a bit hairier today in the markets after a flare-up in geopolitical tensions over the weekend. Iran launched strikes on Israel for its attacks on Hezbollah targets in Beirut, leaving a nervous wait for the Israeli response. There is the heightened risk the war escalates again as peace talks between the US and a clearly emboldened Iran stall. The agenda 7am BST: German factory orders 4pm BST: US inflation expectations

Source: The Guardian