London/New York, March 4, 2026 – The US-Israel-Iran conflict has triggered severe economic turbulence, with Brent crude surging over 12% to near $82 per barrel—the highest in months—following Iran’s Strait of Hormuz restrictions.

The strait, a vital chokepoint for 20% of world oil, saw partial closure after IRGC threats to target transiting vessels. Tankers halted, insurance premiums soared, and shipping stalled, amplifying supply fears despite Saudi and UAE output pledges.

Stock markets plunged worldwide as investors priced in prolonged disruptions. Analysts warn of inflation spikes, recession risks, and energy shortages if the blockade persists. US President Trump ordered naval escorts, but volatility remains high.

Iran frames the action as leverage against aggression that killed Khamenei and ravaged infrastructure. Critics see it as economic warfare, potentially backfiring by alienating neutral powers.

Broader effects include stranded Gulf exports, aviation fuel hikes, and supply-chain strains. European nations mobilize for energy security, while emerging markets face import crises.

The surge highlights oil’s geopolitical vulnerability. While short-term gains benefit producers, sustained conflict could trigger global downturns. Diplomatic intervention grows urgent as economic pain spreads far beyond the battlefield, underscoring war’s cascading worldwide repercussions.