TLDR
- Brent crude climbed above $115 per barrel, marking a nearly 60% increase throughout March, following Iran-backed Houthi strikes on Israel from Yemen
- Bitcoin retreated to a monthly low of $64,991 during overnight trading before rallying back to $67,347, showing a 1.2% gain
- Gold experienced a March decline exceeding 13% despite posting a modest 0.9% recovery, pressured by dollar strength and rising crude prices
- Stock markets across Asia declined, with Japan’s Nikkei shedding 2.8% and South Korea’s Kospi falling 3%
- Trump indicated that an Iranian agreement “could be soon,” while Tehran dismissed direct negotiations and claimed the U.S. was preparing a ground invasion
Crude oil markets witnessed prices exceeding $115 per barrel on Monday following weekend missile launches by Yemen’s Houthi forces targeting Israel, expanding the geographical reach of Middle East hostilities. Brent crude advanced 2.7% to reach $115.55, while West Texas Intermediate climbed 1.8% to $101.41.
The Iranian-backed Houthi movement confirmed launching multiple missiles and promised continued offensive operations. Their involvement in the conflict sparked renewed anxiety regarding maritime traffic through the Red Sea and the Bab al-Mandeb strait, both critical alternative pathways for Gulf petroleum shipments.
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
March has seen Brent crude rally nearly 60% throughout the trading period. This dramatic petroleum price escalation follows Tehran’s decision to restrict passage through the Strait of Hormuz, a maritime corridor responsible for transporting approximately 20% of worldwide oil supplies.
Washington verified the deployment of 3,500 military personnel to the region aboard the USS Tripoli warship. Israeli military forces reported conducting airstrikes against targets within Iran’s capital during the weekend.
Iranian forces also launched strikes against aluminum production facilities in Bahrain and the United Arab Emirates. Aluminium Bahrain acknowledged its operations were hit. Emirates Global Aluminium reported significant infrastructure damage at 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, registering over 10% monthly gains.
Equity Markets Face Downward Pressure
Stock exchanges throughout Asia predominantly experienced losses. South Korea’s Kospi tumbled 3%, weighed down by semiconductor and automotive sector shares. Japan’s Nikkei declined 2.8%. Hong Kong’s Hang Seng retreated 0.9%.
European trading venues showed divergent performance. Germany’s DAX edged lower by 0.2% and France’s CAC 40 remained unchanged. The UK’s FTSE 100 advanced 0.1%, receiving support from energy and basic materials sectors.
American stock futures moved against the broader pattern, with contracts linked to the Dow, S&P 500, and Nasdaq each posting approximately 0.4% gains.
U.S. Treasury yields declined as economic expansion worries intensified. The 10-year yield dropped 5.2 basis points to 4.387%. LBBW analysts projected that economies in both America and Europe could experience roughly a quarter percentage point reduction in annual growth.
Cryptocurrency and Precious Metals Movement
Bitcoin declined to a monthly low of $64,991 during overnight sessions before staging a recovery. The cryptocurrency traded 1.2% higher at $67,347 during early Monday activity.
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 experienced more than 15% depreciation this month, influenced partially by redemptions from gold-backed exchange-traded funds and U.S. dollar appreciation.
Trump informed reporters aboard Air Force One that an Iranian agreement “could be soon,” referencing what he characterized as “very reasonable” new Iranian leadership. 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.
Tehran dismissed direct negotiations and alleged Washington was covertly preparing a ground invasion. Trump also informed the Financial Times he remained receptive to acquiring Iranian oil, while the Wall Street Journal reported Washington was contemplating seizure of Iran’s uranium reserves.
OCBC analysts projected Brent will maintain levels around $100 per barrel through the middle of the year before moderating gradually during the second half of 2026.
