Military tensions between the United States and Iran have escalated again, causing international oil prices to rise and global financial markets to experience volatility.

As geopolitical risks expanded, energy prices showed an upward trend, while AI-related stocks displayed mixed movements as Chinese companies' intensified technology competition and investment uncertainty converged.

▲ U.S.-Iran Conflict Escalates…International Oil Prices Rise

International oil prices rose due to heightened tensions between the United States and Iran, according to a report by the Wall Street Journal (WSJ) on the 20th (local time).

Brent crude futures prices rose 1.3% to $89.22 per barrel.

During the weekend, at least two U.S. soldiers were killed in an Iranian attack, and shipping operations through the Strait of Hormuz, a critical passage for global crude oil transportation, have become virtually paralyzed.

While there have been multiple ceasefire attempts, the likelihood of long-term peace settlement has been gradually diminishing, and analysts noted that concerns about disruptions in international crude oil supply have increased, putting upward pressure on gasoline prices in the United States again.

▲ Alibaba AI Reveal Drives Stock Strength

Chinese Alibaba unveiled a preview version of its latest artificial intelligence (AI) model, drawing market attention.

The company stated that the new model possesses performance levels capable of competing with global leading AI developers such as Anthropic.

Previously, China's Moonshot AI and Z.AI also successively unveiled high-performance AI models, creating considerable tension in the U.S. AI industry.

Buoyed by such expectations, Alibaba's stock price listed on the U.S. stock market closed up 4.7% that day.

New York Stock Market (Photo : [UPI/Yonhapnews provided])

▲ Semiconductor Stocks Show Early Strength, Then Narrow Gains

Semiconductor-related stocks showed strong gains in early trading but surrendered most of their increases toward the end of the session.

The Philadelphia Semiconductor Index rose more than 3% during the day, temporarily overcoming concerns that China's AI technology advances could reduce semiconductor demand.

However, at the close, the gain narrowed to approximately 0.6%.

Intel, ahead of earnings reports due Thursday, rose 2.1% and showed relatively favorable momentum among major semiconductor stocks.

▲ Major U.S. Stock Indices Close Across-the-Board Weakness

Major U.S. stock indices generally closed lower.

The S&P 500 Index fell 0.2%, and the Nasdaq Index also declined slightly.

The Dow Jones 30 Industrial Average finished down 307 points (0.6%) at 51,839.

Markets analyzed that the expansion of geopolitical risks and cautious sentiment regarding AI-related investments simultaneously affected the decline.

▲ AI Industry Growth Dependent on Mega-Scale Long-Term Contracts

Analysis suggests that the current growth momentum of the AI industry is being sustained based on mega-scale long-term contracts concluded between semiconductor suppliers, data center operators, cloud companies, and AI developers.

These contracts support expanded AI infrastructure investments and play a role in enhancing stability across the supply chain.

▲ Risk of Contract Stability Wavering If AI Demand Slows

However, markets have pointed out that if AI demand slows faster than expected, long-term contracts may not serve as absolute safeguards.

Throughout history, the technology industry has repeatedly seen cases where suppliers adjusted contract terms or delayed supply schedules to maintain relationships with customers during periods of economic slowdown.

For this reason, concerns have been raised that investors and financial institutions who have valued company worth or provided funding based on current long-term contracts may suffer greater-than-expected impacts if the AI market's growth momentum falters.