Oil extends gains and stocks drop as Iran conflict spreads
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Mar 03, 2026
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AFP
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Citizen Digital
Citizen Digital
Currency dealers monitor exchange rates in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on March 3, 2026.
Oil prices extended gains and equities fell Tuesday as investors kept tabs on the Middle East as the United States and Israel continued to bombard Iran, while Tehran launched further strikes on neighbours.
Key Takeaways
- Oil prices have surged by nearly 14 percent, with European natural gas prices spiking almost 40 percent, due to regional conflicts impacting energy flows and the Strait of Hormuz being effectively closed.
- The conflict, initiated by a US strike on Iran's supreme leader, is projected to last over four weeks, with US objectives focusing on Iran's military and nuclear programs rather than regime change.
- Rising energy costs due to the conflict are fueling fears of a fresh energy crisis and potentially escalating global inflation, though market reactions have been somewhat tempered by hopes of a short-lived crisis.
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