Global Markets Slide as Iran Attacks Tankers and AI Bubble Fears Grow

Global financial markets experienced a sharp downturn on July 7, 2026, driven by a combination of geopolitical escalation in the Persian Gulf and eroding confidence in artificial intelligence valuations. The volatility began in Asia, where Samsung Electronics saw its shares tumble nearly 7% in Seoul. This occurred despite the company reporting a record April-June operating profit of 89.4 trillion won—a 19-fold increase from the previous year. The slump triggered market-wide circuit breakers in South Korea and spread to Japan and Taiwan as investors questioned the sustainability of AI-driven growth, further exacerbated by reports that Chinese start-up DeepSeek is developing its own AI chips.

On Wall Street, the Nasdaq Composite fell 1.16% and the S&P 500 sank 0.45%. Sector weakness was led by Micron Technology and Nvidia, while Space Exploration Technologies Corp. saw its shares drop 6-7% during its debut on the Nasdaq 100. Concurrently, oil prices spiked after projectiles struck commercial vessels in the Strait of Hormuz, including a Qatari liquefied natural gas tanker. The British military reported three tankers were hit, while Qatar blamed Iran for the attacks.

Geopolitical tensions escalated as Donald Trump revoked a license allowing Iran to sell oil and threatened further military action. Following the funeral of former Supreme Leader Ayatollah Ali Khamenei, he stated the U.S. would either reach a deal with Iran or "finish the job." While attending a NATO summit in Turkey, Trump expressed frustration over insufficient support for the U.S.-Israeli war on Iran, as NATO allies discussed a potential maritime mission in the Strait of Hormuz.