NEW YORK, United States — Global equity markets retreated on Thursday, March 5, 2026, as oil prices surged following a sixth day of heavy conflict in the Middle East. Concerns over a total shutdown of the Strait of Hormuz triggered a sell-off in European and U.S. stocks, overshadowing earlier gains in Asian markets.
Energy markets reacted sharply to reports of escalating hostilities between the United States-Israel alliance and Iran.
- Brent Crude: Climbed 4.9 percent to settle at $85.41 per barrel.
- WTI (West Texas Intermediate): Surged 8.5 percent to $81.01 per barrel.
- The Hormuz Crisis: Fears of severe shortages intensified after Tehran effectively closed the Strait of Hormuz, a critical waterway for 20% of the world’s crude oil and liquefied natural gas.
The earlier rally in Asian markets, particularly in Seoul (up 9.6%) and Tokyo (up 1.9%), failed to sustain itself once Western exchanges opened.
- Wall Street: The Dow Jones fell 1.6 percent (closing at 47,954.74), while the S&P 500 and Nasdaq dropped 0.6% and 0.3%, respectively.
- Europe: Major indices in London, Paris, and Frankfurt all shed approximately 1.5 percent.
- Global Shipping: Danish giant Maersk announced a suspension of all bookings in the Gulf region until further notice due to the unstable security situation.
Analysts warn that higher oil prices will inevitably lead to a spike in gasoline costs, further pinching consumers already struggling with inflation. While the Trump administration has pledged to provide Navy escorts for tankers passing through the Hormuz Strait, experts at National Australia Bank noted that protecting all shipping in the region is functionally impossible.
China has already taken defensive measures, reportedly asking its largest refiners to suspend exports of diesel and gasoline to ensure domestic supply security.
