Oil prices rebounded on Thursday as renewed attacks on tankers in the Middle East stoked supply disruption worries, while gold climbed to a more than two-week high on a softer dollar and lower Treasury yields. In corporate news, OpenAI signaled a potential public listing in 2027, and Micron reportedly suspended construction of a $4.5 billion memory-chip facility in Taiwan due to a labor dispute.
Oil rebounds on tanker attack concerns
Brent crude futures rose 3.97% to $98.38 a barrel, while U.S. West Texas Intermediate gained 2.89% to $90.66. The recovery followed a sharp decline of more than 8% in both benchmarks on Wednesday, when prices settled at their lowest levels since August 31.
The UK Maritime Trade Operations agency reported at least five vessel incidents since Sunday, with the pace approaching the elevated levels seen in October. The outlook for the U.S.-Israeli conflict with Iran remains uncertain, and Democratic victories in the U.S. midterm elections have raised questions about the Trump administration's next steps, including possible escalation after the new Congress convenes in January.
Iran's foreign minister held separate talks with Saudi and Qatari counterparts on diplomatic efforts for regional stability. Saudi Arabia also issued alerts about potential threats to its Yanbu oil export hub as Houthi attacks continued. Eurasia Group lowered its estimate of the probability of renewed U.S. strikes on Iran to 60% from 65%, while increasing the likelihood of a prolonged standoff. The group said further escalation could push Brent crude into a range of $110 to $125 a barrel.
Gold rises as dollar and yields ease
Spot gold gained 1.33% to $4,113.74 an ounce, after hitting an intraday high of $4,146.63, its highest since October 20. The metal had already risen nearly 3.4% on Wednesday, its strongest daily gain since August 19. Prices have climbed more than $250 this week after touching a one-year low of $3,869.85 on Friday.
A weaker U.S. dollar and lower Treasury yields supported bullion. The dollar index hovered near its lowest level since September 30, while the benchmark 10-year Treasury yield sat around a two-month low. Investors are also weighing the impact of energy prices on inflation and Federal Reserve policy. Markets are pricing in a 66% probability of a December rate hike, according to CME's FedWatch tool. The U.S. non-farm payrolls report due Friday could provide further clues about the central bank's next move. Other precious metals also advanced, with platinum rising 1.6% and palladium gaining 3.8%.
OpenAI signals potential 2027 IPO
OpenAI President and co-founder Greg Brockman indicated that the company could be ready for an initial public offering in 2027. The comments come as the ChatGPT maker seeks to strengthen its enterprise business and compete with Anthropic, which is preparing for a potential public listing before the end of 2026.
Brockman said OpenAI's first half of 2026 had been difficult as Anthropic gained ground in enterprise AI and coding tools. However, the company recorded 70% quarterly growth in annualised revenue in the third quarter, with enterprise sales expanding significantly. OpenAI has also secured around $11 billion in commitments for its latest funding round, below its original $30 billion target. The round values the company at approximately $1.25 trillion, compared with the $1.4 trillion valuation it had initially sought. The company is reportedly looking to raise as much as $20 billion, including from family offices and wealthy individual investors.
Micron stock falls as Taiwan project faces delay
Micron shares declined more than 13% on Thursday amid a broader selloff in AI-linked semiconductor stocks. The decline came as investors reassessed the outlook for data centre spending following the U.S. midterm elections. Adding to the pressure, Micron has reportedly suspended construction plans for a $4.5 billion memory-chip facility in Taoyuan, Taiwan, according to Bloomberg.
The project, known as Fab 11E, was expected to produce DRAM and high-bandwidth memory, with operations originally scheduled to begin in 2028. The reported suspension follows a labor dispute over employee compensation. Workers are seeking an arrangement that would distribute 15% of the company's global operating profits among employees, similar to profit-sharing measures at Samsung Electronics and SK Hynix.
Micron has reached an agreement with its larger Taichung union, but the separate Taoyuan union remains dissatisfied with the terms. The company has said its existing Taiwan operations continue normally and that it remains focused on reaching an agreement with the protesting union. Taiwan's Ministry of Economic Affairs has said it supports the existing legal agreement and will work with local authorities to resolve the dispute.
This article is for informational purposes only and does not constitute financial advice.
