Global Oil Prices Rise 6 Per Cent Amid Middle East Conflict, Markets Concerned About Inflation
New York – Global crude oil prices surged at the close of trading on Monday, 2 March 2026 (local time) or Tuesday, 3 March 2026 morning (Western Indonesian Time), amidst escalating aerial warfare between the United States and Israel with Iran.
The intensifying Middle East conflict has triggered concerns regarding global economic recovery and the potential for inflationary surges.
According to Reuters, Brent crude oil futures closed at $77.74 per barrel, jumping 6.68 per cent or $4.87. Meanwhile, US West Texas Intermediate (WTI) crude closed at $71.23 per barrel, rising 6.28 per cent or $4.21.
The increase was driven by US and Israeli air strikes against Iran, which was retaliated by Tehran. This escalation has forced the closure of numerous oil and gas facilities in the Middle East region and has disrupted shipments through the Strait of Hormuz, a vital global energy trade corridor.
In financial markets, the US dollar and gold, known as safe-haven assets, have also strengthened. Rising energy prices have triggered inflation concerns, prompting US government bond yields to increase across all tenors.
Lindsey Bell, Chief Investment Strategist at 248 Ventures, stated that the market’s primary concern is currently focused on inflation and oil price surges resulting from the Middle East conflict.
“There are many concerns at present relating to inflation and oil because of the conflict occurring in the Middle East,” Bell said.
She added that these conditions have kept investors focused on US equities as they are considered to possess greater certainty in terms of earnings performance and economic growth compared to other regions.
“Investors perceive greater certainty in earnings and economic growth in the US compared to other parts of the world,” she continued.
Wall Street gains were driven by the energy sector, which rose nearly 2 per cent alongside the oil price rally, the industrial sector encompassing defence equities rising approximately 1 per cent, and the technology sector strengthening by 0.9 per cent.