Markets Stabilize Amid Conflict: Oil Surges, Gold Rally Continues & Global Risk Sentiment Weakens

Daily Market Update  |  03 March 2026

Global markets showed mixed signals as escalating Middle East tensions continued to drive volatility in commodities and equities. Oil prices surged on supply concerns, while gold extended its rally as investors sought safe-haven assets amid rising geopolitical risks.

1. Asia Markets Fall as Conflict Intensifies

Asian markets declined sharply as the Iran conflict entered its fourth day. South Korea’s Kospi dropped 5.37%, led by heavy losses in Samsung Electronics and SK Hynix, while defense stocks surged amid rising geopolitical tensions.

2. S&P 500 Recovers to Close Flat

U.S. markets rebounded from early losses as investors bought the dip following geopolitical shocks. The S&P 500 edged up 0.04%, while the Nasdaq gained 0.36%. The Dow slipped slightly by 73 points.

3. Gold Extends Rally on Safe-Haven Demand

Gold climbed to around $5,360 per ounce, marking its fifth straight session of gains. Rising geopolitical tensions and inflation concerns boosted demand for the precious metal.

4. Oil Prices Rise on Hormuz Shutdown Risks

WTI crude rose above $72 per barrel amid fears of a shutdown in the Strait of Hormuz, a key global oil transit route. Escalating hostilities have heightened concerns over supply disruptions.

5. U.S. Embassy in Riyadh Targeted

The U.S. Embassy in Riyadh was hit by drones, further escalating tensions. President Trump warned of a strong response, while markets reacted with increased volatility.

6. Flights Resume Slowly in Dubai

Limited flights resumed from Dubai after massive disruptions, with over 11,000 cancellations across the region. Airlines are cautiously restarting operations amid ongoing risks.

7. U.S. Wealth Tax Proposal Emerges

U.S. lawmakers proposed a 5% wealth tax on billionaires, highlighting growing political momentum toward taxing the ultra-rich.

8. Trump’s China Visit Faces Uncertainty

Geopolitical tensions may complicate President Trump’s planned visit to China, with Beijing yet to confirm dates following recent global developments.

9. AWS Data Centers Hit by Drone Strikes

Amazon Web Services reported damage to data centers in the UAE and Bahrain following drone strikes, causing outages and operational disruptions.

10. Apple Launches New Budget iPhone

Apple introduced the iPhone 17e and a new iPad Air powered by its M4 chip, strengthening its position in the mid-tier device market.

11. OpenAI Revises Defense Agreement

OpenAI CEO Sam Altman acknowledged flaws in a recent defense deal and confirmed revisions to ensure ethical AI use, including restrictions on surveillance.

12. Tesla Gains Ground in Europe

Tesla showed signs of recovery in Europe, with strong sales growth in several countries despite ongoing competition and past declines.

13. Paramount Deal Gains Regulatory Support

Paramount’s $110 billion acquisition of Warner Bros is likely to gain regulatory approval, easing concerns over competition.

14. Travel Stocks Hit by Global Disruptions

Travel stocks plunged as aviation disruptions worsened, with over $22 billion wiped out amid widespread cancellations and airspace closures.