TLDR
- Brent crude climbed above $115 per barrel, marking a nearly 60% surge in March, following Houthi missile attacks on Israel from Yemen
- Bitcoin dropped to its lowest level in a month at $64,991 before climbing back to $67,347, registering a 1.2% gain
- Gold experienced a March decline exceeding 13% despite a modest 0.9% uptick, pressured by dollar strength and rising oil
- Asian equity markets declined, with Japan’s Nikkei falling 2.8% and South Korea’s Kospi sliding 3%
- Trump suggested an Iran agreement “could be soon,” while Tehran dismissed direct negotiations and claimed the U.S. is preparing a ground offensive
Crude oil markets breached the $115 per barrel threshold on Monday following weekend missile launches by Yemen’s Iran-aligned Houthi forces targeting Israel, expanding the regional conflict’s footprint. Brent crude advanced 2.7% to reach $115.55, while West Texas Intermediate climbed 1.8% to $101.41.
The Iran-supported Houthi movement confirmed launching multiple missiles and pledged additional strikes. Their involvement in the escalating conflict triggered renewed anxiety regarding maritime traffic through the Red Sea and the strategic Bab al-Mandeb strait, which serves as a crucial backup passage for oil shipments from the Gulf region.
Brent crude has now registered an impressive nearly 60% increase throughout March. The dramatic spike in petroleum prices comes after Iran’s decision to obstruct the Strait of Hormuz, a critical waterway that handles approximately 20% of worldwide oil distribution.
The United States verified the deployment of 3,500 military personnel to the region on the USS Tripoli warship. Israeli military forces reported conducting strikes against objectives in Iran’s capital during the weekend.
Iran 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 drone and missile bombardment. Three-month aluminum contracts on the London Metal Exchange increased 5.4% to $3,461 per metric ton, representing more than 10% growth for the month.
Stock Markets Under Pressure
Asian stock indices predominantly declined. South Korea’s Kospi tumbled 3%, weighed down by semiconductor and automotive shares. Japan’s Nikkei retreated 2.8%. Hong Kong’s Hang Seng decreased 0.9%.
European trading sessions showed mixed results. Germany’s DAX declined 0.2% and France’s CAC 40 remained unchanged. The UK’s FTSE 100 inched up 0.1%, boosted by energy and basic materials sectors.
U.S. equity futures moved against the broader trend, with contracts linked to the Dow, S&P 500, and Nasdaq all posting gains of approximately 0.4%.
U.S. Treasury yields retreated as economic expansion worries mounted. The 10-year yield decreased 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 for the current year.
Crypto and Gold React
Bitcoin slipped to its lowest point in a month at $64,991 during overnight trading before staging a recovery. By early Monday, it was changing hands at $67,347, up 1.2%.
Gold futures advanced 0.9% to $4,533.30 per ounce, although the precious metal remains down over 13% for March. ANZ analysts noted gold has declined more than 15% this month, attributed partially to selling pressure from gold-backed exchange-traded funds and U.S. dollar appreciation.
Trump informed reporters aboard Air Force One that an agreement with Iran “could be soon,” referencing what he characterized as “very reasonable” Iranian leadership changes. He mentioned Iran had permitted 20 oil tankers to transit through the Strait of Hormuz. Pakistan indicated willingness to facilitate discussions between the U.S. and Iran.
Tehran rebuffed direct negotiations and alleged Washington is covertly preparing a ground invasion. Trump also revealed to the Financial Times he remains open to controlling Iranian oil, while the Wall Street Journal disclosed the U.S. is evaluating options to capture Iran’s uranium reserves.
OCBC analysts predicted Brent will maintain levels around $100 per barrel until mid-year before progressively declining during the latter half of 2026.
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