Global stock markets plunged and crude oil prices surged on Tuesday, March 10, 2026, as escalating tensions in the Persian Gulf sparked fears of a major disruption to energy supplies. Initial declines were partially offset late in the day following an assertion by U.S. President Donald Trump that the conflict was “virtually over.”
The initial market reaction saw Brent crude futures briefly climb to $119.50 per barrel before settling at $107.80, fueled by reports of attacks on civilian infrastructure in the Gulf. Simultaneously, the U.S. Dollar strengthened as investors sought a safe haven. Wall Street experienced a volatile session, initially falling more than 1% before recovering to close with gains: the Dow Jones Industrial Average rose 0.50%, the Nasdaq Composite advanced 1.38%, and the S&P 500 increased 0.83%.
During an appearance on CBS, President Trump claimed the offensive was “very advanced” relative to the initial timeline and described Iran’s military capabilities as severely diminished. “They have no navy, no communications, no air force. Their missiles are scattered. Their drones are being destroyed everywhere… They have nothing in terms of military,” he stated. Trump also threatened to take control of the Strait of Hormuz and dismissed the new Supreme Leader, Mojtaba Jamenei, stating he had “no message for him. None, whatsoever.”
The price of gasoline in the U.S. Rose in response to the instability, reaching a national average of $3.32 per gallon for regular unleaded, whereas diesel climbed to $4.33, reflecting a significant weekly increase. Analysts anticipate further increases at the pump due to the typical lag between wholesale and retail markets.
The dollar’s appreciation against other currencies reflected its status as a safe-haven asset. Simultaneously, the yield on 10-year Treasury bonds increased, driven by concerns that a prolonged oil shock could reignite inflationary pressures. These economic factors collectively tightened financial conditions for U.S. Businesses and households.
Asian markets experienced immediate and substantial declines, particularly those heavily reliant on energy imports. Japan’s Nikkei 225 fell by more than 5%, while South Korea activated domestic fuel price caps following a roughly 6% drop in the Kospi and a rapid depreciation of the won. Significant losses were also recorded in Hong Kong, Shanghai, Taipei, Sydney, Singapore, Manila, and Wellington.
The crisis was exacerbated by production cuts in Iraq, Kuwait, and Saudi Arabia, alongside the operational risks to maritime routes through the Strait of Hormuz. The Brent crude market exhibited extreme “backwardation,” indicating immediate scarcity and a willingness to pay a substantial premium for available barrels.
European markets also reacted negatively, with the Stoxx 600 index falling around 1.8% and marking its worst weekly performance in nearly a year. Declines were seen in Frankfurt, Paris, Madrid, London, and Milan. Futures for European natural gas also surged due to disruptions in Qatari LNG shipments and reduced global supply, placing further strain on a continent already facing weakened storage inventories and high import dependence.
The possibility of releasing strategic petroleum reserves was discussed, but the G7 and the International Energy Agency (IEA) reached no firm decision to activate this mechanism immediately. The combined public emergency stockpiles of these nations exceed 1.2 billion barrels, with an additional 600 million barrels held in mandatory private reserves.
Gold prices initially fell by over 1% to around $5,080 per ounce, responding to the strengthening dollar and rising expectations for interest rate hikes, prompting investors to favor liquidity over traditional safe havens.
Latin American markets were also impacted, with the MSCI Latam index suffering its largest daily decline in 11 months. Peru, Brazil, Mexico, and Chile experienced particularly sharp losses. The U.S. Dollar strengthened against regional currencies amid a broader risk-off sentiment. The disruption to Qatari gas shipments also threatened to increase electricity generation costs across the region.
Currency fluctuations across South America reflected the heightened risk aversion. The Peruvian Sol, Brazilian Real, Chilean Peso, Colombian Peso, Argentine Peso, Uruguayan Peso, and Paraguayan Guarani all weakened against the dollar.