Oil surges, stocks slide, dollar rallies as conflict grips Middle EastMarket Reactions to Middle East ConflictBy Alun John and Wayne ColeOil and Commodity Prices SpikeLONDON/SYDNEY, March 2 (Reuters) - Oil prices surged, the dollar jumped and shares slid on Monday as military conflict in the Middle East looked set to last for weeks, threatening to upend a global economic recovery and perhaps reignite inflation. Impact on Global Energy SupplyAll eyes were on the Strait of Hormuz, through which around a fifth of the world's seaborne oil trade flows and 20% of its liquefied natural gas. He added, however, that "a global oil price shock is not the intention of the Trump administration ahead of U.S. mid-term elections in November". A prolonged spike in oil prices would risk reigniting inflationary pressures globally, while also acting as a tax on business and consumers that could dampen demand. Currency and Energy InterplayThe dollar's traditional role as a global safe-haven currency had been challenged by erratic U.S. policymaking.

Source: The Guardian March 01, 2026 23:59 UTC