Iran Still Closes the Strait of Hormuz, Energy Crisis Threat Looms

Jakarta, VIVA – The renewed tensions in the Middle East have immediately unsettled global energy and financial markets. Gas and oil prices surged sharply, while stock indices in the United States, Europe, and Asia fell broadly. According to the BBC on Wednesday, 5 March 2026, UK gas prices rose to their highest level in three years on Tuesday local time. At the same time, Brent crude briefly touched US$85 per barrel, or about Rp1,428,000 (exchange rate Rp16,800), the highest level since July 2024. The spike followed Israel and the United States launching strikes on Iran, which Tehran then retaliated against. Since then, market participants have continued to weigh the potential economic impact of the conflict, particularly on global inflation and the path of central bank policy rates. Global stock markets under pressure. The pressure was felt directly in the equity markets. The FTSE 100 in London closed down 2.75%. Germany’s DAX and France’s CAC 40 fell 3.44% and 3.46% respectively. In the United States, the S&P 500 briefly fell at the start of trading before trimming losses and closing down 0.9%. In Asia, the Nikkei 225 fell 3.3%. The Hang Seng in Hong Kong and the Shanghai Composite in mainland China also weakened. The Kospi in South Korea slumped by more than 7%. Market fears echoed the impact of Russia’s full-scale invasion of Ukraine four years ago, which spurred a surge in energy prices and pushed up the cost of goods and services across many countries. The UK Office for Budget Responsibility warned that escalation of the conflict could disrupt fiscal projections. In its latest fiscal outlook, it noted that the conflict could have highly significant effects on the global economy. German Chancellor Friedrich Merz, who met the US President at the White House, also voiced concerns about the economic impact. ‘That is why we all hope this war will end as soon as possible,’ he said. Gas prices more than doubled. UK gas prices briefly breached 165 pence per therm on Tuesday before closing at 138 pence per therm. The figure remained more than 20% higher than Monday’s price. Since the air strikes began last weekend, UK gas prices have more than doubled.