U.S. stock futures fell as the AI-driven tech rally lost steam ahead of key earnings from Alphabet and Tesla. Nasdaq futures dropped 0.9% as chip makers retreated, with Intel slipping 3.2% in extended trading after an 8% surge Tuesday.

Brent crude surged 4.1% to $94.72 a barrel, the highest in nearly seven weeks, while WTI climbed to $87.78. Oil rallied amid escalating Middle East tensions, with traffic through the Strait of Hormuz declining sharply and tankers avoiding the Bab el-Mandeb Strait. The Caspian Pipeline Consortium halted Kazakh oil loadings after attacks on its Black Sea terminal.

Higher oil prices kept Treasury yields and the dollar near recent highs ahead of significant 20-year Treasury issuance. ING analysts argued Brent at just over $91 is undervalued given Persian Gulf disruptions, Red Sea risks to Saudi exports, and Black Sea developments. S&P 500 futures fell 0.3%, Dow futures 0.2%. Other Wednesday earners include Philip Morris, Texas Instruments, and IBM.