Global stock markets plummeted due to escalation in the Persian Gulf: what is known
3 March 23:54
Global stocks are falling sharply amid escalating tensions in the Persian Gulf. Investors are reacting to statements by US and Israeli officials about a possible prolonged military campaign against Iran, which could last several weeks. This was reported by "Komersant Ukrainian", citing a publication in the New York Times.
Uncertainty in the Middle East has already led to a massive sell-off of assets, a sharp rise in oil and gas prices, and heightened inflation expectations.
Crash on US stock markets
The US S&P 500 index lost about 2%, wiping out all gains since the beginning of the year.
The following also fell sharply:
- Dow Jones
- Nasdaq
- the Russell 2000 small-cap index, which fell nearly 4% due to its greater sensitivity to economic risks.
Rising geopolitical tensions traditionally force investors to exit risky assets.
Asian and European markets are also in the red
The decline has affected key stock exchanges around the world:
- South Korean index — down 7%
- Japanese stocks — down 3%
- European Stoxx Europe 600 — down about 2–3%
Investors fear a prolonged conflict that could affect global supply chains and the energy balance.
Sharp jump in oil and gas prices
The situation in the Strait of Hormuz — a key route for global oil exports — has added to the pressure.
- Brent crude rose 7% to over $80 per barrel, its highest since mid-2024.
- In the US, the price of gasoline rose by 11 cents overnight.
- After the attacks, Qatar suspended production of liquefied natural gas, leading to a sharp rise in gas prices in Europe — in some places almost doubling in two days.
The dollar is strengthening, gold is unstable
On the currency market:
- the US dollar strengthened by about 0.8% as a safe-haven asset;
- the yield on 10-year US Treasury bonds rose to 4.1%;
- gold is showing volatility amid problems with physical deliveries through Dubai.
New risks for the global economy
Rising energy prices are fueling fears of a new wave of inflation.
Market expectations are growing that the US Federal Reserve may postpone interest rate cuts due to the risks of an inflationary surge.
Analysts note that the combination of high energy prices and supply disruptions comes at a critical moment when the global economy has not yet fully recovered from previous trade and tariff shocks.
On February 28, the US announced the start of a military campaign against Iran. US President Donald Trump said the operation’s goal is to eliminate threats from the current Iranian regime and protect American citizens and allies.
