Oil above 80 dollars and the chip restrictions are spooking Wall Street

Wall Street’s stock indexes fell sharply after the news agency Bloomberg reported that US authorities are preparing regulations that would limit the export of artificial intelligence chips worldwide without official approval.

The stock market was already falling when the price of a barrel of WTI-quality oil rose above 80 dollars for the first time since January of last year. Oil prices rose again after Iran said it hit an oil tanker off the coast of Iraq.

In the afternoon New York time, the general index S&P 500 was down 1.4 percent and the techno-heavy Nasdaq was down 1.3 percent. The industrial stock index Dow Jones was down 2.0 percent.

After the chip news, the one manufacturing artificial intelligence chips Nvidia’s the share price was down 2.2 percent and that of the company’s competitor AMD:n rate down 3.1 percent.

Among the sectors of the S&P 500 stock index, only energy companies are in the positive. The strongest decline is in industrial, raw material and healthcare companies.

International stock markets have seen a wild selloff this week after Israel and the United States struck Iran. Iran has made extensive counterattacks, and investors in the market have been especially following the news about how the crisis affects oil trade and transportation. The price of oil has been on a clear rise again today, Thursday.

The market closely monitors how the oil passes through the Strait of Hormuz. President of the United States Donald Trump has promised that the US Navy will protect shipping in the strait, but there is no word yet on when.

It is feared that the rise in oil prices will increase inflation and, at worst, slow down the world’s economic growth.