TLDR
- Brent crude oil soared beyond $115 per barrel, climbing almost 60% throughout March, following Iran-supported Houthi attacks on Israel from Yemen
- Bitcoin dropped to its lowest point in a month at $64,991 before bouncing back to $67,347, gaining 1.2%
- Gold prices declined more than 13% during March despite a modest 0.9% recovery, pressured by strengthening dollar and rising oil costs
- Asian equity markets declined, with Japan’s Nikkei losing 2.8% and South Korea’s Kospi falling 3%
- Trump indicated a potential deal with Iran “could be soon,” though Tehran dismissed direct negotiations and alleged U.S. plans for ground operations
Crude oil valuations exceeded $115 per barrel on Monday following a weekend missile barrage launched by Yemen’s Houthi militants against Israel, expanding the geographical reach of the Middle East conflict. Brent crude surged 2.7% to reach $115.55, while West Texas Intermediate climbed 1.8% to $101.41.
The Iran-backed Houthi forces announced they had fired multiple missiles and committed to launching additional strikes. Their involvement in the conflict sparked renewed worries about maritime traffic navigating the Red Sea and Bab al-Mandeb strait, a critical backup corridor for oil 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 has recorded an increase of approximately 60% during March. The dramatic surge in crude prices follows Tehran’s decision to obstruct the Strait of Hormuz, a vital waterway responsible for transporting roughly 20% of the world’s oil supply.
U.S. officials verified the deployment of 3,500 military personnel to the region on the USS Tripoli warship. Israeli military commanders reported conducting airstrikes against strategic locations in Iran’s capital city during the weekend.
Iranian forces also launched strikes on aluminum manufacturing facilities in Bahrain and the United Arab Emirates. Aluminium Bahrain acknowledged its operations were hit. Emirates Global Aluminium reported significant damage to its Abu Dhabi facility from combined drone and missile assaults. Three-month aluminum contracts on the London Metal Exchange rose 5.4% to $3,461 per metric ton, marking a monthly increase exceeding 10%.
Stock Markets Under Pressure
Asian stock markets predominantly declined. South Korea’s Kospi plummeted 3%, weighed down by semiconductor and automotive sector stocks. Japan’s Nikkei decreased 2.8%. Hong Kong’s Hang Seng index slipped 0.9%.
European trading showed mixed results. Germany’s DAX declined 0.2% while France’s CAC 40 remained unchanged. The UK’s FTSE 100 increased marginally by 0.1%, bolstered by energy and raw materials sectors.
U.S. futures contracts defied the broader pattern, with contracts linked to the Dow, S&P 500, and Nasdaq each rising approximately 0.4%.
U.S. Treasury bond yields declined as economic growth worries intensified. The 10-year yield fell 5.2 basis points to 4.387%. LBBW analysts projected that economies across the Atlantic could experience growth reductions of roughly one-quarter of a percentage point this year.
Crypto and Gold React
Bitcoin touched a one-month bottom of $64,991 during overnight trading before rebounding. By early Monday, it was trading higher by 1.2% at $67,347.
Gold futures advanced 0.9% to $4,533.30 per ounce, although the precious metal remains down over 13% for the month. ANZ analysts noted gold has decreased more than 15% in March, influenced partly by selling pressure from gold-backed exchange-traded funds and U.S. dollar strength.
Speaking to journalists aboard Air Force One, Trump suggested a deal with Iran “could be soon,” referencing what he characterized as “very reasonable” new leadership in Tehran. He mentioned Iran had permitted 20 oil tankers to transit through the Strait of Hormuz. Pakistan announced its willingness to facilitate negotiations between Washington and Tehran.
Iranian officials rebuffed direct dialogue proposals and accused the United States of covertly preparing a ground invasion. Trump also informed the Financial Times he would consider taking control of Iranian oil resources, while the Wall Street Journal revealed the U.S. was evaluating options to confiscate Iran’s uranium reserves.
OCBC market analysts indicated their expectation for Brent to maintain levels around $100 per barrel until mid-year before progressively declining during the latter half of 2026.
