U.S. security tensions and tech disruptions lift energy risks, pressure operations

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US security, tech lift energy risks

Highlights

Oil prices rise above $110 a barrel as U.S. orders non-emergency staff to leave Saudi Arabia amid escalating Houthi attacks and planned Iran strikes.
Political and corporate scrutiny intensifies after The Wall Street Journal reports Elon Musk slowed Ukraine’s Starlink access, adding uncertainty to wartime communications infrastructure.
eBay announces 1,000 job cuts (9% of workforce) and Barclays plans 5,000 layoffs (5% of workforce) to streamline operations and boost AI-linked efficiency.

Security moves and market fallout

As reported by CNBC, the U.S. has ordered non-emergency government employees and their families to leave Saudi Arabia as Houthi attacks on the kingdom escalate. The move comes as U.S. and Israeli militaries have drawn up specific plans for renewed strikes on Iran after next month's midterm elections, CNBC says, citing unnamed U.S. officials.

Oil prices top $110 a barrel amid the tensions, while gas prices in Asia and Europe are at multiyear highs. The sustained rise in energy costs could weigh on households for longer and add to broader inflation pressure across major economies.

Separately, U.S. envoy Steve Witkoff calls Vladimir Putin a “true humanitarian” after Russia frees an American prisoner. Witkoff visits Russia for talks on ending the war in Ukraine, while Kyiv is not part of those discussions.

Starlink questions and corporate technology shifts

The dispute over Ukraine's Starlink access is drawing political and corporate scrutiny after The Wall Street Journal reports that Elon Musk ordered the slowdown of a version of Starlink used by the country in its war with Russia. Musk and President Donald Trump, both of whom have recently criticized Ukrainian President Volodymyr Zelenskyy, discuss the move soon after it becomes public, according to two people cited by the Journal.

Trump denies any role in the matter, saying he does not know who was responsible and that he was not involved. The episode adds another layer of uncertainty around communications infrastructure relied on in the conflict.

The technology sector is also racing to respond to critical vulnerabilities in PHP, an open-source programming language widely used to power websites and web applications. Governments worldwide issue urgent warnings after the flaws knock government websites offline.

In the corporate sector, eBay says it will cut about 1,000 jobs, or roughly 9% of its workforce, in its second round of layoffs this year as it streamlines operations and focuses on faster-growing areas. Barclays also says it plans to cut 5,000 jobs, about 5% of its workforce, as part of an artificial intelligence-linked efficiency push focused mainly on support functions, including developers.

In our earlier article on the sell-off in AI-linked U.S. technology stocks, we noted that investor concerns were growing as semiconductor and infrastructure names slid while oil climbed to around $110 a barrel. We explained that the energy-driven inflation risk could complicate the Fed’s policy path, adding pressure to financing conditions and reinforcing expectations of continued market turbulence.

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