The global energy market is flashing another warning signal.
Brent crude climbed to approximately $114.31 a barrel Friday, October 23, after briefly touching $114.72, its highest level since early May.
Oil prices have surged as escalating fighting involving Saudi Arabia and Yemen's Iran-aligned Houthis threatens energy infrastructure and shipping routes.
Saudi Aramco reportedly ordered the evacuation of its Dhahran headquarters as the security situation deteriorated.
The latest escalation adds to existing concerns over disruptions involving Iran and the strategically important Strait of Hormuz.
The timing could hardly be worse for Wall Street.
Higher energy prices threaten to push inflation expectations upward, potentially complicating the Federal Reserve's interest-rate decisions.
Technology companies, particularly those relying on expensive financing to build AI infrastructure, are especially sensitive to persistently high borrowing costs.
A sustained oil rally could therefore create a double threat: rising operating expenses and tighter financial conditions.
For investors hoping the Fed will rescue the AI trade, the oil market may be becoming the biggest obstacle.