TLDR
- Brent crude oil climbed beyond $115 per barrel, marking a nearly 60% surge in March, following Yemen-based Houthi attacks on Israel
- Bitcoin dropped to $64,991, its lowest point in a month, before bouncing back to $67,347, showing a 1.2% gain
- Gold prices declined over 13% throughout March despite a modest 0.9% recovery, pressured by dollar strength and rising oil costs
- Stock markets across Asia tumbled, with Japan’s Nikkei losing 2.8% and South Korea’s Kospi shedding 3%
- Trump indicated a potential Iran agreement “could be soon,” while Iran dismissed direct negotiations and alleged U.S. ground invasion preparations
Crude oil markets witnessed a significant surge on Monday, with prices exceeding $115 per barrel following weekend missile strikes by Yemen’s Houthi forces targeting Israel, further escalating the Middle East conflict. Brent crude climbed 2.7% to reach $115.55, while West Texas Intermediate advanced 1.8% to $101.41.
The Iran-supported Houthi militia announced they had launched a substantial missile barrage and pledged to continue their offensive operations. Their involvement in the regional conflict has heightened anxieties regarding maritime traffic through the Red Sea corridor and the Bab al-Mandeb strait, a critical backup passage for petroleum shipments from the Gulf region.
BREAKING: Saudi Arabia’s East-West pipeline has officially reached its full capacity of 7 million barrels per day as the Strait of Hormuz remains shut, per Bloomberg.
With the Houthis now entering the war, the concern for oil markets is that the Red Sea becomes a new front.
— The Kobeissi Letter (@KobeissiLetter) March 28, 2026
Brent crude has now registered an extraordinary climb of nearly 60% throughout March. This dramatic price escalation comes on the heels of Iran’s decision to obstruct the Strait of Hormuz, a vital shipping channel responsible for transporting approximately 20% of the world’s oil supply.
The United States verified the deployment of 3,500 military personnel to the region aboard the USS Tripoli vessel. Israeli military forces reported conducting air strikes against strategic locations in Iran’s capital city during the weekend.
Iranian forces also launched attacks on aluminum production facilities in Bahrain and the United Arab Emirates. Aluminium Bahrain acknowledged that its operations were hit. Emirates Global Aluminium reported significant damage to its Abu Dhabi facility from coordinated drone and missile strikes. Three-month aluminum contracts on the London Metal Exchange surged 5.4% to $3,461 per metric ton, reflecting an increase exceeding 10% for the month.
Stock Markets Under Pressure
Equity markets throughout Asia predominantly declined. South Korea’s Kospi index plummeted 3%, weighed down by semiconductor and automotive sector losses. Japan’s Nikkei index retreated 2.8%. Hong Kong’s Hang Seng decreased 0.9%.
European trading sessions showed varied performance. Germany’s DAX index dipped 0.2% while France’s CAC 40 remained unchanged. The UK’s FTSE 100 advanced 0.1%, bolstered by gains in energy and raw materials sectors.
U.S. equity futures diverged from the global trend, with contracts linked to the Dow, S&P 500, and Nasdaq all climbing approximately 0.4%.
U.S. Treasury bond yields declined as economic expansion worries intensified. The 10-year yield retreated 5.2 basis points to 4.387%. LBBW analysts projected that economies across the Atlantic could experience roughly a quarter-percentage point reduction in growth during the current year.
Crypto and Gold React
Bitcoin declined to its lowest level in a month at $64,991 during overnight trading before staging a recovery. By early Monday, it was trading 1.2% higher at $67,347.
Gold futures advanced 0.9% to $4,533.30 per ounce, although the precious metal remains down more than 13% for the month. ANZ analysts noted that gold has experienced a decline exceeding 15% in March, attributed partially to the liquidation of gold-backed exchange-traded funds and increased strength in the U.S. dollar.
Trump informed reporters aboard Air Force One that an agreement with Iran “could be soon,” referencing what he characterized as “very reasonable” emerging Iranian leadership. He mentioned that Iran had permitted 20 oil tankers to transit through the Strait of Hormuz. Pakistan expressed willingness to facilitate negotiations between the United States and Iran.
Tehran dismissed the prospect of direct negotiations and charged Washington with covertly preparing a ground invasion. Trump also revealed to the Financial Times his openness to acquiring Iranian oil assets, while the Wall Street Journal disclosed that the U.S. was contemplating the seizure of Iran’s uranium reserves.
OCBC analysts projected that Brent crude will maintain levels around $100 per barrel through the middle of the year before experiencing a gradual decline during the latter half of 2026.
