New Delhi, July 10 -- Asian stocks rose sharply on Friday, led by chip and AI firms as investors brushed off concern over the stalled recovery of energy supplies through the critical Strait of Hormuz, with tit-for-tat attacks escalating between the U.S. and Iran.

The renewed back-and-forth attacks have further eroded the fragile three-week-old ceasefire, bringing the spotlight back on oil prices and what it could mean for inflation and the global rates outlook.

Brent crude futures were set for a 5% rise in the week, their strongest weekly performance since early May. But at $76.03 per barrel, Brent has given up most of the gains it picked up when the conflict began at the end of February.

"I'm looking at updates from the Middle East an...