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U.S.-Iran Conflict Escalation Triggers Market Volatility. International Oil Prices Surge, Gold Safe-Haven Demand Rises

TradingKeyMar 2, 2026 1:37 AM

TradingKey - Asian crude market prices surged on Monday as Middle East tensions escalated following joint U.S.-Israeli military strikes against Iran.

Global benchmark Brent crude jumped about 13% at the open, hitting an intraday high of $82 per barrel before paring gains.

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There are widespread market concerns that a further expansion of the conflict could hit Middle Eastern crude supply systems, particularly navigation security in the Strait of Hormuz, a strategic global oil transport hub. As a vital passage for nearly 20% of global oil trade, any disruption to the strait's security would directly rattle the global energy market.

Analysts at international investment bank Goldman Sachs ( GS) noted that crude markets had priced in an $18-per-barrel risk premium over the weekend, a magnitude equivalent to the expected impact of a full six-week blockade of the Strait of Hormuz.

Tracing back to the origin of the conflict, after joint U.S.-Israeli forces launched military strikes against Iran on Feb. 28, Iran immediately launched a massive counterattack. Hostilities have since spread across the Persian Gulf, and the situation in the Middle East is sliding toward a dangerous brink. U.S. President Trump stated publicly on March 1 that the military action against Iran is expected to last about four weeks.

Meanwhile, safe-haven flows poured into the gold ( XAUUSD) market, driving spot gold prices up approximately 2% in a single day.

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This content was translated using AI and reviewed for clarity. It is for informational purposes only.

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