Market Wrap Summary - March 12, 2026
By Elior Manier
Date: March 12, 2026
Market Overview
The North American session on March 12 saw significant volatility, primarily driven by a sharp increase in oil prices. Crude oil prices surged from around $87 per barrel to $96, following escalating tensions in the Strait of Hormuz, where multiple ships were reported attacked. This development has raised fears of a prolonged conflict, negatively impacting global stock indexes, which fell between 1.50% in Japan and nearly 2% in the US.
Impact on Inflation and Interest Rates
Investor sentiment has been further strained by inflation concerns, which have shifted expectations regarding Federal Reserve rate cuts. Initially, the market anticipated a 65 basis point cut, but this has now been revised down to just 23 basis points. The rising oil prices are contributing to inflationary pressures, which could lead to reduced economic activity, reminiscent of the 2008 financial crisis.
Market Performance
Today's trading session was challenging for most asset classes, with the US Dollar gaining strength against others. The WTI crude oil price increased by approximately 8.50% over the past 24 hours. Metals, however, faced declines, likely influenced by President Trump's remarks aimed at reassuring the public regarding the situation in Iran.
Currency Movements
The US Dollar led the foreign exchange performance, benefiting from its correlation with rising oil prices. The Canadian Dollar also appreciated, while the Japanese Yen's rise was unexpected, suggesting potential market reversals in upcoming sessions.
Upcoming Economic Data
Traders should prepare for a busy day ahead, with significant US economic data releases expected, including the Core PCE index and University of Michigan Consumer Sentiment. Canadian employment data will also be released early in the morning, which could further influence market dynamics.