Global Energy & Tech Shift: Oil Hits $107.97 as AI Optimism Surges 📈

• Energy Market Volatility: Brent crude futures jumped 2% to a three-week high of US$ 107.97 per barrel following stalled U.S.-Iran peace talks. The continued closure of the Strait of Hormuz remains a critical bottleneck for global energy exports. • Inflationary Pressures: High oil prices have prompted traders to price out potential interest rate cuts in developed markets for 2024. Goldman Sachs has revised year-end Brent forecasts upward to US$ 90, warning of "non-linear" price spikes if inventories hit critical lows. • Sector Performance: • Technology & Chips: Markets in Taiwan, Tokyo, and Seoul reached record highs driven by AI spending optimism. Positive revenue forecasts from companies like Intel have pushed chip-heavy markets to values exceeding Germany’s total market cap. • Petroleum Products: Regional impact is visible in Singapore, where jet fuel prices have reached US$ 185 per barrel, adding pressure to aviation and logistics costs. • Monetary Policy Outlook: Major central banks, including the Federal Reserve, ECB, and Bank of England, are expected to maintain current interest rates this week. The Bank of Japan is projected to hold its policy rate at 0.75%. • Regional Impact: For Sri Lanka, the persistent rise in global energy costs and LNG prices (up 61% from pre-war levels to US$ 16.70 per MMBtu) signals continued pressure on foreign exchange reserves and domestic energy pricing, despite the growth in global ICT/BPM sentiment. _Note: Based on provisional market data and analyst forecasts._