Oil Surges Past $100 as US-Iran Conflict Escalates, Rattling Global Markets

Global markets are bracing for continued volatility as the conflict between the U.S. And Iran intensifies, driving oil prices to their highest levels since July 2022. The surge in energy costs is triggering widespread concern about potential inflationary pressures and economic disruption.

Oil Prices Soar

Crude oil prices have experienced a dramatic increase, with U.S. Crude oil futures rising more than 25% to nearly $115 per barrel and Brent crude, the international benchmark, jumping over 20% to $110 per barrel as of Sunday, March 8, 2026 . This marks the largest single-day gain in six years. The price of oil hit $100 per barrel for the first time since July 2022 , fueled by disruptions to oil infrastructure and production cuts amid the ongoing war .

Stock Market Reaction

The escalating conflict has sent shockwaves through global stock markets. S&P 500 futures plunged 2.3%, Dow futures plummeted over 1,000 points, and Nasdaq 100 futures slid 2.7% indicating a continuation of last week’s downward trend .

Asian markets experienced significant declines on Monday, March 9, 2026. South Korea’s Kospi index closed down almost 6%, while Japan’s Nikkei 225 finished 5.2% lower . Australia’s ASX 200 closed down 2.85%, and Chinese markets too saw losses. European markets are also expected to open lower, with Germany’s DAX index poised to fall more than 3.3%, the U.K.’s FTSE 100 expected to drop 2%, and the pan-European Stoxx 600 anticipated to fall nearly 2.5% .

The FTSE 100 fell over five percent last week as investors moved to safe haven assets .

Gas Prices Rise

U.S. Retail gas prices have also surged, reaching a national average of over $3.45 per gallon . These price levels haven’t been seen since immediately after the Russian invasion of Ukraine in February 2022.

Broader Economic Implications

Experts warn that sustained high oil and gas prices could lead to increased inflation. David Miles, a committee member at the Office for Budget Responsibility, stated that the rate of inflation in the UK could increase by around 1% if prices remain elevated . The current situation echoes the price surges experienced following Russia’s invasion of Ukraine, though the increases are not yet as substantial .

Recent Developments

Recent reports indicate attempted drone attacks on Saudi Arabia’s Ras Tanura oil refinery and the suspension of Liquified Natural Gas (LNG) production by QatarEnergy . These events further contribute to the instability in global energy markets.