Oil Falls Amid Expectations of Oversupply | Horizons Middle East & Africa 7/2/2026

Summary

Asian tech stocks sold off sharply on news that Apple is in talks to buy memory chips from blacklisted Chinese firms and Meta is launching a cloud business, raising concerns about AI infrastructure overbuild. Oil prices extended their decline as shipping through the Strait of Hormuz recovered following US-Iran talks. Kevin Warsh's comments at the ECB forum soothed inflation fears, while the program also covered Nigeria’s contentious stock rally, South Africa’s inflation warning, and a $49 billion AI fund raised by Abu Dhabi’s MGX.

• South Korean semiconductor giants Samsung and SK hynix plunged as Apple seeks Chinese memory chips and Meta enters cloud services, sparking fears of AI overinvestment.
• Meta's cloud move is viewed positively for its own revenue diversification but raises questions about demand for external chips.
• Brent crude fell below $71 as tankers resumed moving through the Strait of Hormuz, erasing war-related gains.
• Former Fed official Kevin Warsh signaled inflation risks have eased, supporting bonds and gold.
• Nigeria’s stock index is up 52% in dollar terms on reform optimism, but public discontent is turning the rally into a political liability.
• South Africa’s central bank warned on rising inflation expectations and hinted at possible policy tightening.
• Wall Street firms are expanding in the Gulf region as M&A activity defies the Iran conflict backdrop.
• Abu Dhabi's MGX raised $49 billion for one of the largest AI-focused funds ever, cementing the emirate's role in global AI investing.