Oil up, but stocks hold near-record highs as AI optimism trumps Iran tensions

Global stocks held near record highs on Monday even as oil prices rose on renewed U.S.-Iran tensions, with investors treating artificial-intelligence enthusiasm as the stronger market force, according to Reuters coverage.

The market tone reflected a split-screen reaction. Oil climbed nearly 3% as Gulf hostilities revived concern about shipping through the Strait of Hormuz, a vital route for global crude flows. At the same time, equity investors largely looked past the geopolitical risk and kept buying into the AI trade.

Nvidia helped reinforce that theme. The chipmaker announced RTX Spark and other AI-focused Windows PC plans the same day, adding to the market's sense that demand tied to AI is still expanding.

Geopolitical risk remains in view

The Reuters report said tensions involving Iran and the wider Middle East were still a factor for traders, but not enough to dislodge global equities from near-record territory. U.S. Treasury sanctions guidance issued earlier this year also underscored the risks around activity tied to the Strait of Hormuz and Iranian territorial waters.

For now, the balance of forces appears to favor earnings and product-cycle optimism over headline risk from the region. The immediate question is whether that resilience holds if oil continues to rise or if the geopolitical backdrop worsens further.