March 2026 – Markets fall sharply on energy and geopolitical shocks

As the conflict in the Middle East escalated in March, global financial markets saw renewed volatility. The closure of the Strait of Hormuz, a vital transit point for a significant portion of the world’s oil and gas, caused crude oil prices to spike, reviving concerns about inflation and economic slowdown. 

The energy shock dragged all equity markets down. As investors contemplated the risks of higher interest rates in a more uncertain inflationary environment, expectations for monetary policy took a hawkish turn. Despite this difficult climate, the markets managed to limit their losses at the end of the month, ending their last session higher when comments from the Trump administration raised hopes that the conflict was easing.