The escalation in the Middle East conflict has sent shockwaves through global financial markets. On Friday, after Israel attacked Iran, US oil prices surged 7.26% to $72.98 per barrel, while Brent crude rose 7% to $74.23 per barrel, according to research from eight sources. US stocks fell sharply the same day, with the Dow Jones Industrial Average dropping 770 points, or 1.79%, the S&P 500 declining 1.13%, and the Nasdaq falling 1.3%. Gold, a traditional safe-haven asset, rose about 1.4% to $3,433 per troy ounce on Friday, reflecting investor anxiety.
However, market sentiment reversed sharply on March 16, 2026, when Wall Street closed sharply higher as oil pulled back below $95 per barrel, attributed to Trump's call to reopen the Strait of Hormuz. Asian markets opened higher on March 17, tracking Wall Street's rebound. The conflicting data on oil prices highlight the volatility: while one set of reports indicates Brent crude spiked from about $72 to over $100 per barrel, a 40% increase, another suggests oil prices have risen by only about $10 per barrel due to the conflict. The exact timeline of these movements remains unclear, and the current Brent crude price as of the latest reporting is uncertain. The US stock market is down less than 3% since the beginning of the war in the Middle East, according to research from eight sources, but different sources give varying figures for the overall change.
We have seen a short period of hesitation for trips to the Gulf region.
The United States is considering joining Israel in military action against Iran, according to financial markets. The US has been a net exporter of petroleum products since 2019, which may affect its vulnerability to oil supply disruptions. The status of the Strait of Hormuz reopening and its impact on oil supply remains unknown.
The tourism sector in the Gulf region has collapsed amid the conflict. UAE reservations have dropped over 90%, according to research from eight sources. The IFO Institute's tourism industry index fell sharply to minus 41.7 points in March from minus 14.8 in February, indicating a severe downturn. Tui reported a 'short period of hesitation' for trips to the Gulf region, according to Neil Swanson, Tui UK and Ireland managing director. On The Beach suspended its profit forecast and warned of plummeting bookings for Turkey, Greece, Cyprus and Egypt, according to a stock market announcement.
Broader tourism impacts are severe. According to Bloomberg citing Cirium, 46,000 flights have been cancelled since the conflict began in late February. The World Travel & Tourism Council estimates the conflict is costing the tourism sector $600 million per day in lost international visitor spending. It is unclear whether these booking declines are temporary or expected to persist.