Oil Surges to $78, Global Stocks Plunge on Iran-US War Fears

Global financial markets reacted sharply on Wednesday to the renewed military confrontation between the United States and Iran, with oil prices surging and stocks tumbling across every major region as investors braced for further instability in the Middle East.

Oil Prices Spike as Hormuz Fears Return

Brent crude, the international oil benchmark, jumped from approximately $72 per barrel on Tuesday to $78 on Wednesday morning — a single-day gain of roughly 8%. The spike came after Iran attacked three commercial tankers in the Strait of Hormuz and the US responded with strikes on more than 80 Iranian targets. The Strait, through which about one-fifth of global oil and gas supply flows, has been disrupted since Iran shut it down on February 28 following US and Israeli strikes.

The Iran war has pushed oil prices up nearly 32% so far in 2026, according to the International Monetary Fund, which released a revised global economic outlook on the same day.

Stock Markets Under Pressure

The selling was widespread across all major markets:

• United States: S&P 500 futures fell 0.82% in pre-market trading on Wednesday. The index had already closed down 0.45% on Tuesday.
• Europe: The pan-European Stoxx 600 dropped 1.69% in early trading; the UK's FTSE 100 was down 1.55%.
• South Korea: The KOSPI tumbled 5.35%, one of the sharpest falls in Asia.
• Japan: The Nikkei 225 declined 2.11%.
• India: The Nifty 50 fell 2.23%.
• China: The CSI 300 was down a more modest 0.77%.

Surprise Move: Gold Falls Too

Unusually for a period of geopolitical risk, gold — traditionally a safe-haven asset — also declined. The continuous futures contract for gold slipped 2.24% to $4,066.40 per troy ounce, suggesting some investors were selling precious metals to cover losses elsewhere or raise cash. Bitcoin was trading at approximately $61,900.

SpaceX: Index Addition Can't Offset War Fears

Shares in SpaceX, which had been added to the Nasdaq 100 index, fell 7% on Tuesday despite the expected buying pressure from index-tracking funds. The stock closed at $149.47, above its IPO price of $135 but well below a recent peak of $201.80. Analysts at J.P. Morgan, Deutsche Bank, and Morgan Stanley all initiated or maintained "buy" ratings, with JPMorgan setting a target of $225 by December 2027.

Markets will be watching closely for any diplomatic signals from Ankara, where the NATO summit is underway, or from Tehran, as both sides assess their next moves in a conflict now in its fourth month.