Oil tops $113 as AI stock sell-off spurs bond buying

Oil prices climbed above $113 per barrel on Friday, reaching their highest levels since May, as an AI-driven stock sell-off rattled global markets and investors sought safety in US bonds. Brent crude traded at $113.73, up 0.5% after a 4% jump the previous session. The S&P 500 fell 1.2% and the Nasdaq tumbled 2.6% on Thursday, with AI-related stocks like Nvidia, Meta, and Tesla hit hard amid concerns over high borrowing costs for data centers and AI chips. Meanwhile, US Treasury yields dropped sharply as investors bought bonds, with the 10-year yield falling to 4.97% from 5.13%. France's 10-year government bond yield remained above 5% at 5.07%, compared to Germany's 3.34%, amid protests and debt concerns. Oil gains were fueled by attacks in Saudi Arabia and soaring shipping costs, with Middle East Gulf-to-Asia crude transport costs exceeding $37 per barrel, over five times pre-war levels.