Middle East Tensions and Inflation Worries Weigh on Global Stocks and Metals

Barry Adams
23 Mar, 2026
New York City

 

Stocks on Wall Street retreated for the fourth consecutive week amid escalating tensions in the Middle East. 

The S&P 500 Index decreased 1.4%, and the tech-heavy Nasdaq Composite dropped 1.8% at the start of a new week. 

Benchmark indexes extended losses for the fifth week, and the S&P 500 index has fallen 7% from its peak on January 12, and the Nasdaq Composite has declined about 9% from its high on January 28. 

Brent crude oil prices jumped to as high as $115 a barrel, and West Texas Intermediate rose 0.6% to $98.73 a barrel. 

as the leaders of the U.S. and Iran exchanged sharp comments over the reopening of the Strait of Hormuz. 

Over the weekend, the U.S. president threatened to attack Iran's power plants, and Iranian leaders said that the nation is ready to attack key U.S. assets and desalination plants in the Middle East in retaliation. 

Despite the U.S. president's claims of war nearing the end, the militaries of the U.S. and Israel are preparing for a ground offensive through the borders with Iraq and Pakistan, according to sources in Karachi and Bagdad. 

At least 3,000 U.S. Marines are expected to cross Iran's border with the help of Kurds in the north and Baluchis in the southeast.

Benchmark indexes in China, Hong Kong, India, and Asia plunged between 2.5% and 4% amid escalating tensions in the Middle East. 

Elevated fuel prices continued to fuel inflation worries among major central banks, supporting the hawkish stance on future rate outlooks.

Gold, silver, and copper continued to drift to new lows amid worries that major central banks may be forced to lift rates following a sharp increase in crude oil and natural gas prices. 

Spot gold prices dropped as much as 8% on Monday and hovered near $4,100 per ounce. Gold is now down about 25% from its peak of $5,594.90 at the end of January. 

Silver declined 5.4% to $63.86 an ounce and extended its loss to over 50% since the high of $117.00 on February 28, when the Israel-U.S. war on Iran began.