Markets Slide: Middle East Conflict Shakes Global Markets, Oil Surges & Gold Jumps
Daily Market Update | 02 March 2026
Global markets came under pressure as escalating conflict in the Middle East triggered sharp moves in oil and safe-haven assets. Investors reacted to geopolitical risks, inflation concerns, and continued uncertainty around AI-driven market disruptions.
1. Airline Stocks Drop as Energy Shares Surge
Airline stocks across Asia fell sharply as Middle East airspace disruptions impacted travel. Singapore Airlines dropped over 6%, while ANA, JAL, Qantas, and EVA Air all declined more than 4%. In contrast, energy stocks gained as oil prices surged amid escalating conflict involving Iran.
2. Dow Drops Over 500 Points on Inflation Concerns
U.S. markets declined sharply after a hotter-than-expected inflation report. The Dow fell 521 points, while the S&P 500 dropped 0.43% and the Nasdaq lost 0.92%. Concerns over persistent inflation and AI-driven disruptions weighed heavily on investor sentiment.
3. Gold Surges Above $5,360 as Safe-Haven Demand Rises
Gold climbed more than 1% to above $5,360 per ounce, reaching a one-month high as geopolitical tensions intensified. The rally reflects strong safe-haven demand amid escalating Middle East conflict and continued central bank buying.
4. Oil Jumps Above $71 on Supply Disruption Fears
WTI crude oil surged more than 6% to above $71 per barrel, hitting an eight-month high as tensions escalated. Markets are closely watching the Strait of Hormuz, a key global oil transit route, amid fears of supply disruptions.
5. Iran Rejects Talks, Escalation Risks Rise
Iran’s leadership ruled out negotiations with the U.S., blaming Washington for escalating tensions. Rising hostilities have pushed oil prices higher while increasing uncertainty across global markets.
6. Global Markets Brace for Wider Conflict
Analysts warn that the latest strikes could trigger a prolonged conflict in the Middle East. Iran’s retaliatory actions and U.S. military presence have heightened fears of broader geopolitical instability.
7. U.S. Government Shutdown Talks Continue
The White House presented a new funding proposal for the Department of Homeland Security as a partial government shutdown continues. Negotiations remain ongoing amid disagreements over immigration enforcement policies.
8. China Moves to Stabilize Currency
China’s central bank took steps to slow the yuan’s rapid rise by encouraging dollar buying. The move aims to support exporters impacted by the stronger currency.
9. Lithium Demand Set to Surge with EV Growth
Global lithium demand is expected to rise 25%, driven by electric vehicle growth and energy storage expansion. The outlook signals recovery in the battery metals sector.
10. Nvidia Plans New AI Chip
Nvidia is reportedly developing a new chip focused on faster AI inference processing, aiming to improve response speeds for advanced AI systems.
11. Global Aviation Faces Major Disruptions
Airline operations were severely disrupted as Middle Eastern airspace closures triggered widespread cancellations. Major hubs including Dubai and Doha experienced significant shutdowns.
12. Paramount to Acquire Warner Bros Discovery
Paramount Skydance agreed to acquire Warner Bros Discovery in a $110 billion deal, creating a major media powerhouse amid intensifying competition in the streaming industry.
