economy
March 9, 2026
Middle East Once Again Dictates Global Stock Markets
The American-Israeli attack on Iran escalated last week, dispelling investors' fears that major disruptions to gas and crude oil supply chains would be difficult to avoid.
TL;DR
- The US-Israeli attack on Iran has caused major disruptions to oil and gas supply chains, leading to a sharp increase in crude oil prices.
- US crude oil (WTI) and Brent crude experienced their largest weekly price increases on record and since 2020, respectively.
- Despite a plan to insure tankers, oil prices surpassed $100 per barrel, with potential for production cuts in the Gulf countries if the Strait of Hormuz remains closed.
- A $10 per barrel increase in crude oil could reduce US economic growth by 0.1%, impacting inflation and Fed interest rate policy.
- The US labor market lost 92,000 jobs in February, below consensus, leading analysts to anticipate a Fed rate cut in July rather than June.
- The unemployment rate rose to 4.4% in February, while wages grew slightly above expectations.
- The energy sector has seen significant gains, while defensive sectors like consumer staples and utilities are also up.
- Trade Desk (TTD) shares surged on insider buying and potential OpenAI advertising deals, while Beiersdorf (BEIG) shares dropped after forecasting minimal sales growth amidst rising costs.