The conflict between the US-Israeli alliance and Iran has sent shockwaves through global energy markets. According to research from multiple sources, LNG prices have risen almost 60% since the start of the war. Muyu Xu, senior crude oil analyst at Kpler, confirmed the surge. Oil prices have also climbed sharply: on Friday, after Israel attacked Iran, US oil rose 7.26% to $72.98 and Brent crude rose 7% to $74.23, according to multiple reports. Overall, research indicates oil prices have risen by about $10 a barrel due to the conflict.
QatarEnergy suspended LNG production on March 2 after an Iranian drone attack, according to research from two sources. This disruption is particularly significant for Asian markets, which rely heavily on energy shipments through the Strait of Hormuz. The US Energy Information Administration reports that about 84% of crude oil and 83% of LNG passing through the strait in 2024 was bound for Asia. China, India, Japan and South Korea accounted for nearly 70% of oil shipments through the Strait of Hormuz, the agency added.
Financial markets have shown mixed reactions to the conflict. On Friday, US stocks fell sharply, with the Dow down 770 points (1.79%), the S&P 500 down 1.13%, and the Nasdaq down 1.3%, according to multiple reports. However, Wall Street closed sharply higher on March 16, 2026 as oil pulled back below $95 per barrel, research from five sources shows. Asian markets opened higher on March 17, 2026 tracking Wall Street's rebound, according to multiple reports. Despite the volatility, research indicates that financial markets are taking a relatively sanguine view of the conflict.
Safe-haven demand has boosted gold and defense stocks. Gold rose about 1.4% to $3,433 per troy ounce on Friday, according to multiple reports. Airlines and travel stocks fell on Friday, while defense contractors rose, research shows.
Several Gulf and Asian allies have requested currency swap lines from the US to help with energy shocks, US Treasury Secretary Scott Bessent said. The US Treasury provided Argentina with a $20bn currency swap in October 2025, according to research from two sources.
Analysts are forecasting potential oil price declines if the conflict is short-lived. Neil Shearing and team at Capital Economics predict that oil prices could fall back to $65 per barrel by end of 2026 if the conflict ends quickly.
The exact timeline of oil price movements remains unclear, as reported prices vary widely: Brent crude reached $106 per barrel as of March 10, 2026, according to some reports, while other reports show Brent at $74.23 on Friday. This large discrepancy suggests different time points or reporting errors. The specific Gulf and Asian allies that requested currency swaps from the US have not been named. The current status of QatarEnergy's LNG production after the suspension is also unknown. Analysts have not provided a clear timeline for how long the conflict is expected to last.