Tensions in the Strait of Hormuz have escalated with three tankers attacked, threatening global energy supplies as countries seek to restore normal shipping practices.

This comes alongside a sharp decline in AI-related stocks, which have been under pressure due to concerns over overvaluation and limited productivity returns.The ASX is expected to open lower, with futures indicating a 0.23% drop in the S&P/ASX 200 index.Globally, the S&P 500 fell 0.4%, while the Nasdaq composite dropped 1.2% amid AI sector weakness.Rising oil prices, driven by the attacks, are adding inflationary pressure, pushing US 10-year Treasury yields to 4.52%.

Key tech stocks like Samsung Electronics, Micron Technology, and Intel saw significant declines, while Nvidia's slight rise provided some market relief.

The geopolitical and economic uncertainties are creating a challenging environment for investors, with markets reacting to both immediate risks and long-term concerns about central bank policy responses.