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Oil Explodes Above $100 After Iran Strike, Triggering Global Market Selloff

Oil prices surged sharply after geopolitical tensions in the Middle East triggered a major supply shock. Brent crude broke above the $100 level at the open and quickly rallied to $119.50, marking a 25% intraday surge that could become the largest single-day gain on record if sustained. Since President Trump ordered military strikes on Iran, Brent has now climbed around 60%, reflecting growing concerns over prolonged supply disruption. The rally is being driven by a severe disruption in shipping through the Strait of Hormuz, one of the most critical energy chokepoints in the world. Tanker traffic has effectively collapsed as insurers hesitate to cover shipments through the conflict zone. When crude cannot move through the Strait, exports stall even if production continues, forcing producers to consider scaling back output due to storage constraints. The shock is already spilling across global markets. WTI crude surged to around $104.88, rising nearly 33% on the day, while risk assets sold off sharply. Equity markets across Asia reacted immediately, with the Nikkei falling about 7%, South Korea dropping 8%, and Taiwan down roughly 5%. European equity futures declined between 1% and 3%, while US stock futures slipped around 2%, reflecting rising fears of inflation and slowing economic growth. Refined fuel markets are showing early signs of stress. European jet fuel prices have surged to the equivalent of about $190 per barrel, highlighting how quickly transport and logistics costs could rise if the disruption persists. These moves could feed directly into inflation as airlines, freight companies, and manufacturers pass higher costs onto consumers. Explore how the Strait of Hormuz crisis is impacting energy markets and shaping the outlook for global risk assets.

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Publication date:

2026-03-09 08:40:56 (GMT)

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