Oil prices fall, US gas drops below $4, and Apple warns of price hikes due to AI

Global markets are experiencing significant shifts this week, with oil prices falling and US gasoline costs dropping below $4 per gallon following a newly inked interim peace agreement between the United States and Iran. The deal, which aims to end a four-month conflict, includes the crucial reopening of the Strait of Hormuz and a waiver of US sanctions on Iranian oil exports, boosting the global supply outlook. While this agreement has brought market optimism, analysts caution that the full normalization of oil flows and supply chains could take several months.

Concurrently, Apple has announced impending price hikes across its product range. Outgoing CEO Tim Cook indicated that these increases are "unavoidable" due to the soaring costs of memory and storage chips, which have seen a dramatic rise, with some prices more than doubling since late 2025. This surge in chip expenses is largely attributed to the immense demand generated by the booming artificial intelligence (AI) sector for data centers and new AI-powered features in consumer devices, impacting products like the forthcoming iPhone 18 Pro.