Stocks Plummet, Oil Prices Surge Amid Escalating Middle East Conflict

Global Markets Plunge Amid Ongoing Middle East Conflict

Global Equity Market Selloff Deepens

Global stock markets experienced a decline on Friday, March 27, as the four-week-old Middle East conflict continues to sap consumer and business confidence. The lack of progress in resolving the conflict has led to a rise in oil prices, with Brent crude futures increasing by 4.2% to $112.57 a barrel and U.S. West Texas Intermediate futures settling up 5.4% at $99.64.

The global equity market selloff has intensified in recent days, with the Dow Jones Industrial Average falling 1.6%, the S&P 500 losing 1.6%, and the Nasdaq Composite shedding 2.1%. The S&P 500 has lost 9% from its record close in January. Economists and businesses believe the conflict's disruption to world oil supply will filter through to inflation worldwide and drag on growth.

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Market Indexes

• Dow Jones Industrial Average: -1.6%
• S&P 500: -1.6%
• Nasdaq Composite: -2.1%
• STOXX 600: -0.95%
• Germany's DAX index: -1.4%
• London's FTSE 100 index: -0.05%

Bond Yields Rise

Government bond yields rose as central banks are seen as more likely to raise interest rates to head off a potential inflationary shock stemming from higher energy costs. The 10-year U.S. Treasury yield rose by more than 1 basis point to 4.432%. Money markets now see a roughly 60% chance the U.S. Federal Reserve raises rates this year.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Currency and Commodities

• U.S. dollar: rose to its highest level against the yen since July 2024
• Spot gold: up 3% to $4,513.73 an ounce
• U.S. dollar index: rose 0.27% to 100.16 for a fourth straight session of gains