World shares tumble as Iran war pushes crude prices over $110 a barrel
[March 09, 2026] By
ELAINE KURTENBACH
BANGKOK (AP) — World shares tumbled on Monday, with Japan’s benchmark
Nikkei 225 index plunging more than 5%, after oil prices spiked at
nearly $120 a barrel, casting a shadow over economies heavily dependent
on imports of oil and gas from the Middle East.
The futures for the S&P 500, Nasdaq composite index and the Dow Jones
Industrial Average were trading more than 1% lower after dropping more
than 2% late Sunday.
A Chinese special envoy to the Middle East, Zhai Jun, called for an end
to the attacks and said strikes on non-military targets and civilians
should be condemned. Meanwhile, South Korean President Lee Jae Myung
warned against hoarding, panic buying and collusion between refiners and
gas stations.
“Please respond proactively to the growing volatility in the financial
and foreign exchange markets, which are the lifeblood of our economy,"
Lee said. He said the government would cap fuel prices.
Oil prices rocketed higher after both sides in the war struck new
targets over the weekend, including civilian ones. Bahrain accused Iran
of hitting one of the desalination plants that are crucial for drinking
water in Gulf countries. Its national oil company declared force majeure
after the country's sole oil refinery was attacked. Israel struck oil
depots in Tehran, sending up thick smoke and causing environmental
alerts.
In early European trading, Germany's DAX dropped 2.6% to 22,983.67 and
the CAC 40 in Paris lost 2.7% to 7,779.46. Britain's FTSE 100 lost 1.9%
to 10,089.05. The only market to show gains was in oil exporter Norway,
where its benchmark edged 0.1% higher.
During Asian trading, Japan's Nikkei 225 plunged more than 7% early in
the day but regained some of those losses to close 5.2% lower at
52,728.72. South Korea's Kospi sank 6% to 5,251.87.
Chinese markets, which tend to be less affected by global trends, saw
more moderate losses. Hong Kong's Hang Seng fell 1.4% to 25,408.46 and
the Shanghai Composite index lost 0.7% to 4,096.60.
Taiwan's benchmark dived 4.4% and India's Sensex lost 2.3%. Other
regional markets also swooned.
As of 0900 GMT, the price for a barrel of Brent crude was $106.61 a
barrel. U.S. benchmark crude rose to $103.20. Both were about 15% above
their closing prices Friday.
Crude prices have spiked to their highest levels in at least 14 years as
the war, now in its second week, ensnares countries and places that are
critical to the production and movement of oil and gas from the Persian
Gulf. . They last rose above $100 shortly after Russia invaded Ukraine
in 2022.
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People walk in front of an electronic stock board showing Japan's
Nikkei index at a securities firm Monday, March 9, 2026, in
Tokyo.(Kyodo News via AP)
 “The market woke up to the sound
every macro trader dreads. The oil alarm bell. And this time it was
not a polite chime. It was a fire siren,” Stephen Innes of SPI Asset
Management said in a commentary.
Surging oil and gas prices, if they persist, could ripple across the
globe, further complicating matters for countries still adjusting to
higher tariffs on exports to the United States under President
Donald Trump.
Senior officials of Southeast Asian countries were meeting this week
in Manila, the Philippines, where they were expected to discuss ways
to counter the shock from higher energy costs.
“Oil prices will reach a peak at some point –- maybe they already
have, maybe there’s more to come -– but they are likely to fluctuate
at elevated levels for weeks, perhaps months,” Ipek Ozkardeskaya of
Swissquote said in a commentary. “Eventually -– even if the war
persists –- energy prices will likely come down. But during this
period, high energy prices will revive inflation globally and weigh
notably on growth.”
On Friday, the S&P 500 dropped 1.3% after a report showed U.S.
employers cut more jobs last month than they created and after oil
prices shot above $90 per barrel. The combination of a weak economy
and high inflation is a worst-case scenario for investors because
the Federal Reserve has no good tool to fix both problems at the
same time.
The Dow plunged as many as 945 points before finishing with a loss
of 453, or 0.9%, and the Nasdaq composite sank 1.6%.
Early Monday, the U.S. dollar, which retains its status as a safe
haven for investors bracing against uncertainty, gained against
other major currencies. It was trading at 158.55 Japanese yen, up
from 158.09 yen late Friday. The euro rose to $1.1539, up from
$1.1556.
___
Associated Press writer Kim Tong-hyung contributed from Seoul, South
Korea.
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