economy
March 3, 2026
Stock markets slump amid Iran war as gas prices jump 30% to three-year high
FTSE 100 on track for its worst day in 11 months, while Japan’s Nikkei and South Korea’s Kospi also fall
TL;DR
- Global financial markets are in turmoil due to the Middle East war, with oil and gas prices surging and stock markets plummeting.
- US stocks fell sharply, with the Dow dropping 0.8%. The London FTSE 100 saw its biggest one-day fall in 11 months, and Asian markets also tumbled.
- Brent crude oil jumped 6% to nearly $83 a barrel, and UK gas prices surged 30%, reaching a three-year high.
- Soaring energy prices are expected to jeopardize plans to conquer inflation and revive UK economic growth, potentially driving UK inflation higher.
- The pound hit its lowest level against the US dollar in almost three months.
- Expectations for interest rate cuts by the Bank of England and the US Federal Reserve have significantly decreased.
- The IMF noted that disruptions to trade, surges in energy prices, and financial market volatility add to an already uncertain global environment.
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