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A devastating fire erupted at the Shahran oil depot in Tehran, Iran, on March 8, 2026, following targeted attacks by U.S. and Israeli forces. This incident resulted in severe damage, rendering numerous fuel tankers and vehicles in the area unusable.
In the wake of these events, Asia-Pacific markets braced for a downturn as the week began, continuing the tumultuous trend from the previous week. Notably, oil prices surged past the $100 per barrel mark, a threshold not reached since 2022.
Brent crude futures saw a dramatic increase of 16.1%, reaching $107.61 per barrel. Similarly, U.S. West Texas Intermediate crude futures climbed by nearly 17.7%, hitting $107.02. These significant hikes in oil prices were triggered by reduced production from key Middle Eastern oil producers, including Kuwait, Iran, and the United Arab Emirates, following the strategic closure of the Strait of Hormuz.
In a statement on Truth Social, U.S. President Donald Trump remarked that the rise in “short term oil prices” was a “very small price to pay” for the success in dismantling Iran’s nuclear threat. This comment reflects the broader geopolitical tensions at play, influencing market dynamics and energy prices on a global scale.
The surge comes after major Middle Eastern oil producers, including Kuwait, Iran and the United Arab Emirates, cut oil production following the closure of the Strait of Hormuz.
U.S. President Donald Trump, however, posted on Truth Social that a gain in “short term oil prices” was a “very small price to pay” for destroying Iran’s nuclear threat.
“Only fools would think differently!” Trump added.
Australia’s S&P/ASX 200 fell 3.1% in early trade.
Japan’s Nikkei 225 was poised to fall nearly 6% based on futures data, with the Chicago contract at 51,760 compared to the previous close of 55,620.84.
The futures contract in Osaka was at 51,660, representing a drop of over 7% against the last close
Hong Kong Hang Seng index futures were at 25,328, below the index’s last close of 25,757.29.
U.S. stock futures also tumbled on higher oil prices, with Dow Jones Industrial Average futures down over 800 points or 1.75% lower.
S&P 500 futures were down 1.59%, while Nasdaq-100 futures slid 1.6%.
— CNBC’s Spencer Kimball contributed to this report.
