Asian tech shares surged Monday, driven by risk-on sentiment and chip stock rallies. Global markets remained cautious as investors balanced Middle East conflict concerns with U.S.-Iran negotiations set for the weekend. Front-month Brent crude oil held below $100 a barrel, despite President Trump’s criticism of Iran’s refusal to open the Strait of Hormuz.

Israeli strikes on Lebanon risked destabilizing the fragile U.S.-Iran cease-fire, though peace talks are scheduled for next week. U.S. stock futures dipped slightly, with S&P 500 futures down 0.1% amid muted European trading. Traders highlighted Brent crude at $96.85 and WTI at $98.65, focusing on potential breakthroughs in a U.S.-Iran vessel transit protocol that could unlock oil shipments. Kpler’s Emmanuel Belostrino noted this protocol is “the single variable that determines whether this backlog starts to clear.” The Iranian attack on Saudi Arabia’s East-West pipeline, which cut 700,000 barrels daily, underscored supply vulnerabilities. U.S. stocks edged lower premarket, with Dow futures declining 0.2% and Nasdaq futures slipping 0.1%.

All eyes remain on Friday’s CPI data and geopolitical developments.