Market Summary - March 3, 2026

The financial markets experienced significant turmoil on March 3, 2026, primarily driven by escalating tensions in the Persian Gulf. The conflict intensified as Israel, supported by the United States, launched missile strikes on Iran under Operation “Epic Fury.” In retaliation, Iran targeted U.S. military bases in the region and threatened oil installations in Gulf countries.

Key Market Movements

• US500: 6851.4 (+0.55%)
• US100: 24909.25 (+0.80%)
• Gold: 5189.58 (+1.98%)
• Silver: 85.552 (+4.42%)
• Oil: 80.94 (-1.14%)
• EUR/USD: 1.16392 (+0.25%)
• USD/JPY: 157.189 (-0.24%)

Conflict Impact

President Donald Trump reported that military operations were proceeding satisfactorily and could last four to five weeks, with larger strikes anticipated. Iran's announcement of the closure of the Strait of Hormuz, although contested by the U.S., led to increased tensions in oil markets, causing vessels to avoid the strait and disrupting crude transport logistics.

Market Reactions

The conflict's repercussions were felt on Wall Street, with major U.S. indices suffering losses. The S&P 500 fell by 1.1%, the Nasdaq by 1.2%, and the Dow Jones by approximately 1%. European markets mirrored this trend, with significant declines across major indices: the UK’s FTSE 100 dropped over 2.7%, France’s CAC 40 fell nearly 3.5%, Germany’s DAX declined by 3.6%, and Spain’s IBEX 35 lost over 4.5%.

Geopolitical Developments

In a notable geopolitical development, Spain denied the U.S. access to its military bases for operations against Iran, prompting President Trump to announce a suspension of trade relations with Spain.

Forex and Commodities

The U.S. dollar strengthened against other major currencies, reflecting its status as a safe haven amid rising uncertainty. Inflation data from the euro area showed an annual increase to 1.9% in February, surpassing expectations, which contributed to the dollar's appeal.

Precious metals faced downward pressure, with gold testing the $5,100 per ounce level, while silver fell to around $83 per ounce. In contrast, crude oil prices rose due to the conflict, with Brent crude testing the $80 per barrel mark and WTI crude reaching approximately $74 per barrel.

Cryptocurrency Market

Cryptocurrencies also experienced declines, with Bitcoin down around 1% and trading below $69,000, while Ethereum fell more than 2.8%, slipping below the $2,000 level.

Conclusion

The ongoing conflict in the Persian Gulf is likely to continue influencing market dynamics, particularly in the oil sector, with potential implications for global economic growth and inflationary pressures.