Global Markets Reel as Iran Conflict Rages On

Investors fear repeat of 2022 energy crisis as oil prices surge

Published on Mar. 4, 2026

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The ongoing conflict between the United States, Israel, and Iran has sent shockwaves through global financial markets, with equities plunging and oil prices soaring. The situation has revived memories of the 2022 energy crisis following Russia's invasion of Ukraine, which proved disastrous for markets. President Trump is now scrambling to stabilize oil prices and avoid an economic calamity ahead of the midterm elections.

Why it matters

The surge in oil prices stemming from the Iran conflict is a major threat to the global economy, as it can drive up inflation, undermine consumer spending, and complicate central bank efforts to control inflation through interest rate hikes. A prolonged energy crisis could trigger a recession, making this a high-stakes situation for policymakers and investors alike.

The details

After a 3% fall in European equities and a 3.5% plunge in Asian markets, Wall Street limited its losses to 0.9% thanks to intervention by President Trump, who announced the U.S. is ready to secure and escort oil tankers through the Strait of Hormuz. However, the respite proved short-lived as oil prices resumed their upward march. The rise in crude prices is a major concern, as it can drive up inflation, undermine consumer spending, and complicate the Federal Reserve's efforts to control inflation through interest rate hikes.

  • Yesterday, European equities fell 3% and Asian markets dropped 3.5%.
  • The New York Stock Exchange limited its losses to 0.9% during the trading session.

The players

Donald Trump

The President of the United States, who announced that his country is ready to secure and escort tankers venturing through the Strait of Hormuz in an effort to stabilize oil prices.

Federal Reserve

The central bank that may face challenges in controlling inflation due to the surge in oil prices, which could undermine its ability to cut interest rates.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.