Stocks, currencies slide as Mideast tensions keep oil prices high
Oil prices were again choppy with Brent last up 0.4 per cent at $112.62 a barrel, and 55 per cent higher on the month so far
23 March, 2026
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Share markets slid in Asia on Monday while US bond yields hit eight-month peaks as the US and Iran traded escalating threats and Israel planned for “weeks” more fighting, sending oil prices on another roller-coaster ride.
Iran said on Sunday it would strike the energy and water systems of its Gulf neighbours if US President Donald Trump followed through with a threat to hit Iran’s electricity grid in 48 hours, extinguishing any hope of an early end to the war, now in its fourth week.
Trump warned Iran had two days to fully open the vital Strait of Hormuz, which is effectively closed for most vessels with little prospect of naval protection for shipping.
Japan’s Nikkei fell 3.8 per cent, bringing losses for March so far to over 13 per cent. South Korea’s market .KS11 shed 5.2 per cent, making a 12 per cent drop for the month.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 2.5 per cent, while Chinese blue chips dropped 1.9 per cent.
Oil prices were again choppy with Brent last up 0.4 per cent at $112.62 a barrel, and 55 per cent higher on the month so far. U.S. crude CLc1 gained 0.8 per cent to $98.98.
Near-term supplies have been aided by the US allowing Iranian and Russian oil to be sold from tankers, but the growing risk of longer-term shortages was lifting futures down the curve. September Brent, for instance, was up $1 at $92.90 suggesting high prices were here to stay.
“The war could still go on for many weeks yet and see oil prices rise say to $150 a barrel,” said Shane Oliver, head of investment strategy at fund manager AMP. “And the steady destruction of energy infrastructure means it will take longer to get supply back to normal.”
“It’s also worth noting that past oil shocks unfolded over many months in terms of the rise in oil prices as the full impact became clearer – it was over about 4 months in 1973 and a year in 1979.”
Analysts at HSBC noted Singapore jet fuel was up 175 per cent this year to a multi-decade high, while Asian liquefied natural gas had climbed 130 per cent. Bunker fuel used in shipping had blown out, raising the cost of transporting goods, while surging fertiliser prices will make food more expensive.
International Energy Agency boss Fatih Birol warned the crisis was “very severe” and worse than the two oil shocks of the 1970s put together.























