Global benchmarks surpass eighty five dollars per barrel as Middle East maritime insurance cancellations paralyze shipping.

Crude oil benchmarks soared to $85 and European gas prices jumped 40% as a total shipping halt in the Strait of Hormuz triggered a global stock market dive.

By: AXL Media

Published: Mar 3, 2026, 11:09 AM EST

Source: The information in this article was sourced from Kuwait Times

Paralysis of regional energy infrastructure

The widening war has led to the systematic shutdown of major energy assets across the Middle East. Qatar has officially halted all liquefied natural gas (LNG) production, while Saudi Arabia has shuttered its largest refinery as a precautionary measure. In the United Arab Emirates, emergency crews are currently battling a massive fire at the Port of Fujairah following reports of explosions in the industrial zone. Furthermore, gas production in the eastern Mediterranean has been suspended at several fields, and output from Iraqi Kurdistan has virtually ceased, creating a massive supply vacuum in the global market.

Plunge in global equity and currency markets

Financial centers worldwide responded to the escalation with significant sell offs. Major European indices in Frankfurt, Madrid, and Milan shed approximately four percent, while London and Paris saw losses nearing three percent. Market analysts warn that the inflationary impact of the conflict is beginning to affect regional growth forecasts, with the European Central Bank indicating that a sustained energy shock could trigger stagflation. In Asia, the retreat was even more pronounced, with the Seoul exchange diving seven percent and Tokyo shedding over three percent as investors fled to the safety of the U.S. dollar.

Escalation of attacks on diplomatic and strategic sites

The military situation continues to deteriorate with new reports of drone and missile attacks targeting high profile sites. A drone attack was reported at the U.S. Embassy in Riyadh, Saudi Arabia, while smoke was seen rising from the U.S. Embassy in Kuwait City. In Kuwait, air defense systems were activated to intercept drones near the residential neighborhoods of Rumaithiya and Salwa. The Kuwaiti government has reportedly moved to a war footing, coordinating with Gulf Cooperation Council (GCC) leaders to secure sensitive infrastructure against further incursions.