Asian Markets Plunge as Oil Prices Surge Past $100 Amid Middle East Conflict

BANGKOK (AP) – Asian stock markets experienced a significant downturn on Monday, March 9, 2026, triggered by a surge in oil prices above $100 a barrel. The price increases are directly linked to disruptions in oil supply caused by the ongoing conflict in the Middle East.

Nikkei 225 Leads the Decline

Japan’s benchmark Nikkei 225 index bore the brunt of the sell-off, plummeting more than 6% in early trading. The index closed down 6.2% at 52,166.92 . This decline reflects investor concerns about the economic impact of higher energy costs on the import-dependent Japanese economy.

Regional Contagion

The negative sentiment spread across the region. South Korea’s Kospi index fell 6.3%, while stock markets in Australia and Modern Zealand declined by more than 3% . U.S. Futures also mirrored the downturn, with the S&P 500 futures dropping 1.9% and the Dow Jones Industrial Average futures experiencing a significant decline.

Oil Prices Reach Multi-Year Highs

Brent crude oil reached $107.97 a barrel shortly after trading resumed on the Chicago Mercantile Exchange on Sunday, representing a 16.5% increase from its Friday closing price of $92.69 . This marks the highest crude price in over three and a half years. The surge is attributed to supply concerns stemming from the war in the Middle East, which is impacting major oil-producing countries and hindering exports from the Persian Gulf .

Economic Concerns Mount

Analysts warn that sustained oil prices above $100 per barrel could inflict significant damage on the global economy . The conflict has already driven crude and gasoline prices higher, impacting countries reliant on Middle Eastern oil supplies. The U.S. Crude price jumped 36% and Brent crude rose 28% last week .

Market Reaction and Future Outlook

The market volatility follows a prior sell-off on Friday, when the S&P 500 dropped 1.3% after a U.S. Employment report . The current situation underscores the sensitivity of global markets to geopolitical events and the critical role of stable energy supplies. Investors are closely monitoring the developments in the Middle East and assessing the potential for further escalation and its impact on the global economy.