economy
Oil on track for record monthly surge as Iran war disrupts markets
Brent crude jumps 51% since start of March and gold suffers fifth-largest monthly fall in 50 years
TL;DR
- Brent crude oil is on track for its biggest monthly gain on record in March, with a 51% climb.
- The price surge is attributed to the war in Iran and its disruption to global oil supply, with the Strait of Hormuz being nearly closed.
- US crude prices also rose significantly, with West Texas Intermediate gaining 48%.
- Oil prices climbed despite the release of 400 million barrels from emergency reserves.
- Gold prices have fallen by almost 15% in March, marking its worst month since 2008.
- Stock markets, including the Dow Jones and FTSE 100, experienced significant losses, with the Dow entering a correction.
- UK government bonds also weakened, as expectations of interest rate cuts by the Bank of England were revised.
- Analysts suggest markets are prioritizing supply risks over political statements regarding oil prices.