How the Middle East conflict has shaped financial markets

PUBLISHED Aug 27, 2026, 3:49 AM ET

Six months after military strikes triggered open conflict between the United States, Israel, and Iran, global energy markets face ongoing turbulence while global equities remain surprisingly resilient. Brent crude averages nearly $90 per barrel in 2026, up from $70 in 2025, spiking over $120 following disruptions in the Strait of Hormuz. Shortages of middle distillates have sharply increased diesel prices, exacerbated by attacks on Russian refineries. Although global equity indexes reached record highs buoyed by tech investments, Gulf market benchmarks dropped over 14 percent. Traditional safe-haven assets failed to provide steady protection; U.S. Treasuries declined 3.5 percent on persistent inflation expectations and fiscal uncertainty. Simultaneously, fertilizer transport blockades and El Niño weather patterns pushed international food prices to a three-year high. Regional economies face severe headwinds, with Gulf property sales falling significantly and energy export infrastructure sustaining structural damage amid continuing geopolitical instability.

By Sarah Whitman | JQJO News

Media Bias

Articles Published:: 31
Right Leaning:: 7
Left Leaning:: 8
Neutral:: 16

Explain Framing

Left: Highlights global food insecurity, consumer hardship, and agricultural supply stress. Center: Reports factual price shifts across commodities, equities, and sovereign debt. Right: Emphasizes domestic AI strength, fiscal policy critique, and energy independence.