Key Highlights
- Brent crude oil climbed above $115 per barrel, marking a nearly 60% surge in March following missile strikes on Israel by Iran-allied Houthi forces from Yemen
- Bitcoin touched a monthly low at $64,991 during overnight trading before bouncing back to $67,347, registering a 1.2% gain
- Gold prices declined more than 13% throughout March despite a modest 0.9% recovery, pressured by dollar strength and rising oil costs
- Stock markets across Asia suffered losses, including a 2.8% decline in Japan’s Nikkei and a 3% drop in South Korea’s Kospi
- Former President Trump indicated a potential deal with Iran “could be soon,” while Iranian officials dismissed direct negotiations and alleged U.S. plans for ground operations
Crude oil markets witnessed significant upward momentum on Monday as Brent prices breached the $115 per barrel threshold following weekend missile launches by Yemen’s Houthi militants targeting Israel, escalating the regional crisis. Brent crude advanced 2.7% to reach $115.55, while West Texas Intermediate climbed 1.8% to settle at $101.41.
The Iranian-supported Houthi faction announced multiple missile launches and threatened continued assaults. Their involvement in the expanding conflict sparked renewed anxiety regarding maritime traffic navigating the Red Sea and the strategically important Bab al-Mandeb strait, which serves as a critical alternate passage for petroleum shipments from the Gulf region.
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 witnessed Brent crude appreciation approaching 60%. This dramatic price acceleration stems from Iran’s decision to obstruct the Strait of Hormuz, through which approximately 20% of worldwide oil supply flows.
American military officials acknowledged positioning 3,500 service members in the region via the USS Tripoli naval vessel. Israeli defense forces reported conducting military operations against Iranian targets in Tehran during the weekend.
Iranian forces also launched strikes against aluminum production facilities in Bahrain and the United Arab Emirates. Aluminium Bahrain acknowledged attacks on its operations. Emirates Global Aluminium reported substantial damage to its Abu Dhabi facility from combined drone and missile bombardment. London Metal Exchange aluminum futures for three-month delivery surged 5.4% to $3,461 per metric ton, accumulating over 10% gains for the month.
Equity Markets Face Headwinds
Stock exchanges throughout Asia predominantly registered losses. South Korea’s Kospi index retreated 3%, weighed down by semiconductor and automotive sector weakness. Japan’s Nikkei benchmark declined 2.8%. Hong Kong’s Hang Seng index fell 0.9%.
European trading sessions delivered mixed outcomes. Germany’s DAX index slipped 0.2% while France’s CAC 40 remained unchanged. The UK’s FTSE 100 posted a marginal 0.1% advance, bolstered by energy sector and basic materials companies.
American equity futures diverged from global patterns, with contracts linked to the Dow Jones, S&P 500, and Nasdaq indices all appreciating approximately 0.4%.
U.S. Treasury bond yields declined amid mounting economic growth worries. The benchmark 10-year yield retreated 5.2 basis points to 4.387%. LBBW economists projected that economies in both the United States and Europe could sacrifice roughly a quarter percentage point of growth during the current year.
Digital Currency and Precious Metals Movement
[[LINK_START_4]]Bitcoin[[LINK_END_4]] descended to a monthly nadir of $64,991 during overnight sessions before staging a recovery. The cryptocurrency traded 1.2% higher at $67,347 by early Monday.
Gold futures appreciated 0.9% to $4,533.30 per ounce, although the precious metal remains down over 13% for March. ANZ market strategists noted gold’s decline exceeding 15% this month, partially attributable to selling pressure from gold-backed exchange-traded funds and U.S. dollar appreciation.
Speaking to journalists aboard Air Force One, Trump suggested an agreement with Iran “could be soon,” referencing what he characterized as “very reasonable” new Iranian government officials. He claimed Iran had permitted 20 petroleum tankers to transit the Strait of Hormuz. Pakistani authorities expressed readiness to facilitate negotiations between Washington and Tehran.
Iranian leadership rebuffed direct diplomatic engagement and alleged covert American preparations for ground military intervention. Trump separately informed the Financial Times of openness to controlling Iranian petroleum resources, while the Wall Street Journal disclosed U.S. consideration of confiscating Iran’s uranium reserves.
Market analysts at OCBC forecast Brent crude maintaining positions near $100 per barrel through the middle of the year before gradually moderating during the latter half of 2026.
