Oil prices surged and global stock markets fell sharply on March 2, 2026, following weekend military strikes by the United States and Israel against Iran.

 

Oil prices rise and stock markets dip as Iran war threatens global economy

Oil prices surged and global stock markets fell sharply on March 2, 2026, following weekend military strikes by the United States and Israel against Iran. The escalation, which included the reported death of Iran's Supreme Leader, has effectively shut down the Strait of Hormuz, a critical maritime route carrying approximately 20% of the world's oil.

 

Market Performance Summary

Crude Oil: Brent crude jumped as much as 13% in early trading before settling near $80 per barrel. U.S. West Texas Intermediate (WTI) rose over 7% to approximately $72–$73 per barrel.

Stock Markets: U.S. equity futures tumbled, with S&P 500 futures down 1.2% to 1.4% and Nasdaq 100 contracts falling 1.6% to 2.0%.

Safe Havens: Gold reached a new all-time high, trading above $5,300–$5,400 per ounce. The U.S. dollar also strengthened as investors retreated from riskier assets.

Energy Supply Disruption: Analysts warn that if the Strait of Hormuz remains closed, oil prices could exceed $100–$130 per barrel.

Inflationary Pressure: Sustained high energy costs may complicate central bank efforts to lower interest rates, with U.S. gas prices potentially rising to $4.50–$6.00 per gallon.

Sector Impact: Airline and travel stocks have been hit hardest due to flight halts and fuel cost spikes, with British Airways owner IAG SA dropping 13% in early trading. Conversely, defense stocks like BAE Systems rose over 6%.