Oil falls as Trump pledges economic war on Iran

The chip giant's shares, along with those of rival SK hynix, peaked in June on optimism for the artificial intelligence boom, but have since fallen amid investor jitters and a broader tech rout. 

In an important week for artificial intelligence, investors are also looking towards an earnings report from Nvidia, the world's most valuable company and a bellwether for the sector.

The recurring question for the US chip maker is whether the AI boom will continue to accelerate as the technology takes over more corners of the broader economy.

"The spending machine is still running, but the bill is getting heavier," said Stephen Innes of SPI Asset Management.

"Nvidia must now show that the most expensive investment boom in modern market history can still pay its bills."

Chinese tech giant Alibaba is also keeping focus on the sector this week after announcing on Sunday that it plans to issue $10.2 billion in new shares in Hong Kong to fund its global AI ambitions.

The firm, known for its open-source "Qwen" AI models, has been ploughing tens of billions of dollars into artificial intelligence, with its shareholders eager to see how it will monetise the huge investments.

Tokyo, Shanghai, Taipei and Wellington were down on Monday. Sydney, Jakarta and Bangkok posted gains, while Manila and Kuala Lumpur were flat.

Eyes are also on US Treasury boss Scott Bessent, who he would give more details in a news conference on Monday on a fresh push to pile economic pressure on Iran.

The United States warned allies and China on Thursday to join Trump's new campaign, which comes as the unpopular war in the Middle East drags toward the six-month mark.

Vice President JD Vance admitted the plan was a "delicate dance" because Iran will "try to apply economic pressure to us".

Asked whether the United States would pressure China, Bessent told CNBC that "many conversations are best to have in private", but called on Beijing "to get with the programme".

Both main crude contracts were down 2.3 percent, with the Brent benchmark sitting at $92 a barrel.

Traders will also be watching this week's annual gathering of central bankers, economists and finance chiefs in Jackson Hole in the United States, hoping for some clarification on US monetary policy.

The meeting comes after the Treasury bought its own bonds last week in an effort to push down borrowing costs after the 30-year yield surged to levels last seen in 2007, just before the global financial crisis.

Yields have risen on inflation fears and as the United States reported that its federal debt had topped $40 trillion. 

- Key figures at around 0215 GMT -

Tokyo - Nikkei 225: DOWN 0.3 percent at 65,799.25

Hong Kong - Hang Seng Index: DOWN 2.1 percent at 25,455.95

Shanghai - Composite: DOWN 0.5 percent at 3,887 .81

London - FTSE 100: UP 0.6 percent at 10,816.56 (close)

Dollar/yen: DOWN at 158.82 yen from 159.03 yen on Friday

Euro/dollar: UP at $1.1684 from $1.1679

Pound/dollar: UP at $1.3651 from $1.3647

Euro/pound: UP at 85.59 pence from 85.58 pence

West Texas Intermediate: DOWN 1.9 percent at $85.39 per barrel

Brent North Sea Crude: DOWN 1.8 percent at $92.68 per barrel

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