Global energy markets and stock exchanges have been roiled by a dramatic escalation in the Middle East following coordinated military strikes by the U
Global energy markets and stock exchanges have been roiled by a dramatic escalation in the Middle East following coordinated military strikes by the United States and Israel against Iranian military and nuclear infrastructure on February 28, 2026.
The conflict, which reportedly killed Iran’s Supreme Leader Ayatollah Ali Khamenei, has effectively paralysed the Strait of Hormuz. This vital maritime artery handles approximately 20% of the world’s oil and liquefied natural gas (LNG) supplies.
As the conflict entered its fourth day on March 3, Iran retaliated by targeting the energy infrastructure of regional U.S. allies, leading state-owned QatarEnergy to suspend LNG production after attacks on facilities in Ras Laffan and Mesaieed.
The disruption has triggered a sharp surge in commodity prices, with Brent crude futures jumping as much as 13% to briefly top $85 a barrel, its highest level since mid-2024.
European natural gas prices have seen even more extreme volatility, rocketing by more than 39% as markets braced for a prolonged loss of Qatari exports, which account for about 20% of global LNG supply.
Analysts warn that if the Strait of Hormuz remains closed for an extended period, oil prices could surpass $100 a barrel, potentially reigniting global inflation and forcing central banks to reconsider planned interest rate cuts.
In the United States, average gasoline prices have already begun to climb, jumping 11 cents overnight to approximately $3.11 per gallon by early Tuesday.
Global equity markets have tumbled as investors flee to safe-haven assets like gold and the U.S. dollar amid fears of a wider regional war.
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