The Brent crude oil price surged 29% to $119.50 per barrel, triggering a sharp sell-off across Asian markets. Japan’s and South Korea’s stock exchanges led the plunge—both down more than 6% and 7%, respectively—in the wake of escalating U.S.-Israeli military operations against Iran.
Oil Breaks $120 Threshold Amid Escalating Conflict
This marks the first time since the pandemic-era highs of 2020 that oil has breached the $100-per-barrel level—and now stands just shy of $120. With no signs of de-escalation in the U.S.-Israeli campaign against Iran, and both sides appearing prepared for a prolonged confrontation, market sentiment has deteriorated rapidly.
Reports that former U.S. President Donald Trump is considering deploying special forces to seize Iran’s enriched uranium—a key material for nuclear weapons—fueled further volatility in oil markets. Meanwhile, South Korea’s and Japan’s stock exchanges spearheaded the regional downturn, while U.S. and European equity futures slid more than 2%, signaling broader global selling pressure ahead.
Double-Digit Gains in Oil Prices Compound Volatility
Today’s 29% jump in oil prices—on Monday, March 9, 2026—follows last week’s 28% rally. West Texas Intermediate (WTI) rose 31%, with Brent climbing above $115 per barrel after briefly nearing the $120 mark. The surge came as major oil producers curbed output and shipping through the Strait of Hormuz effectively halted.
Iran’s recent appointment of Ayatollah Ali Khamenei’s son as its new supreme leader—and Trump’s public comment that higher oil prices are a “very small price” to pay for security and peace—underscore the deepening geopolitical rift and growing expectations of extended conflict.
Bond Yields Surge, Gold Slips Amid Inflation Fears
U.S. Treasury yields climbed amid mounting concerns over accelerating inflation. Benchmark 10-year Treasury yields rose sharply for the year—defying their traditional role as safe-haven assets. Instead of stabilizing amid turmoil, U.S. government bonds mirrored oil’s rally, with yields spiking as inflation fears dominate central bank thinking amid already elevated price levels.
A stronger U.S. dollar and expectations of higher interest rates are also weighing on precious metals. Gold fell below $5,100 per ounce, while silver edged toward $83 per ounce. With geopolitical uncertainty intensifying, analysts warn the worst may still lie ahead.