Asian markets climbed on Wednesday as investors regained confidence following tech-led gains on Wall Street, even as the military conflict involving the United States, Israel, and Iran continues to disrupt global energy supplies. Seoul's KOSPI surged over 3 percent, driven by strong performance in semiconductor heavyweights Samsung Electronics and SK hynix, while Tokyo's Nikkei 225 advanced more than 2 percent. Other markets in Taipei, Sydney, Singapore, and Wellington also joined the rally, though Hong Kong and Shanghai experienced minor dips. Analysts noted that traders were cautiously "looking through" geopolitical noise and taking cues from Wall Street's technology-driven rebound, signaling that markets may be beginning to price in a prolonged conflict while focusing on corporate fundamentals and sector-specific growth stories.
Oil prices continued to trade near the psychologically significant $100 per barrel mark on Wednesday, reflecting persistent regional risks despite a modest pullback from recent highs. West Texas Intermediate (WTI) crude fell approximately 1 percent to around $95 per barrel, while Brent crude dipped 0.8 percent to approximately $102 per barrel. This slight decline follows weeks of dramatic volatility that have seen prices surge more than 40 percent since the conflict began on February 28, reaching their highest levels since 2022. The modest retreat on Wednesday came as traders locked in profits following recent gains, but the overall price structure remains elevated due to ongoing disruptions near the Strait of Hormuz, a critical transit chokepoint through which approximately one-fifth of the world's oil supply normally passes.
The Strait of Hormuz continues to be the epicenter of energy market concerns, with the waterway effectively paralyzed since the conflict's outbreak. US forces have been targeting "hardened Iranian missile sites" with 5,000-pound bombs in an effort to keep tanker traffic flowing, while Iran has responded with drone and missile strikes against energy infrastructure throughout the Gulf region. The situation escalated further on March 14 when US military forces conducted a massive bombing raid on Kharg Island, Iran's most important oil export hub, which handles approximately 90 to 95 percent of the country's crude exports. President Donald Trump claimed the operation "totally obliterated" every military site on the island, though he emphasized that the United States deliberately avoided striking oil infrastructure itself. In response, Iran has warned that any further attacks on its energy infrastructure will trigger retaliation against oil and energy installations across the region belonging to companies cooperating with the United States.
The conflict has triggered what the International Energy Agency (IEA) has described as the largest oil market disruption in history. Global oil supply is expected to fall by approximately 8 million barrels per day in March 2026 due to transportation disruptions, while Middle Eastern producers have been forced to cut output by at least 10 million barrels per day. Rystad Energy estimates that only 12.5 million barrels per day of Middle Eastern oil remain online, down sharply from 21 million barrels per day before the war. Exports of crude and refined petroleum products through the Strait of Hormuz have plunged to less than 10 percent of pre-conflict levels. Major producing countries including Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait are currently reducing their production by several million barrels per day to avoid saturating their storage capacities.
The conflict has directly impacted energy infrastructure across the Gulf region. On March 14, drone attacks disrupted oil loading operations at the UAE's Port of Fujairah, the only multipurpose maritime facility on the country's east coast and a major oil depot located just outside the Strait of Hormuz. The attack followed US strikes on Iran's Kharg Island and resulted in a fire caused by debris from an intercepted drone. In Iraq, authorities were forced to halt operations at southern oil ports after what was described as a "cowardly act of sabotage" targeted two oil tankers in territorial waters near Basra, killing at least one crew member. Saudi Arabia's air defense systems intercepted 18 drones targeting the kingdom's eastern region and the Shaybah oil field, while fuel storage tanks in Bahrain's Muharraq Governorate were also targeted in strikes attributed to Iran.
In response to the escalating crisis, the International Energy Agency has coordinated a record release of emergency oil reserves, with member countries agreeing to release 400 million barrels to help stabilize surging energy prices. The United States has announced the release of 172 million barrels from its Strategic Petroleum Reserve, the world's largest emergency stockpile. The IEA has indicated that Asian countries will receive these volumes as a priority due to their heavy dependence on Middle Eastern oil. Australia has begun tapping its strategic fuel reserves for the first time since the Russia-Ukraine war in 2022, releasing up to 762 million liters of petrol and diesel. Thailand is seeking alternative energy sources and negotiating with suppliers outside the Gulf region, while Bangladesh is working to secure diesel imports from India, Malaysia, Singapore, China, and Indonesia.
Goldman Sachs has revised its oil price forecasts upward, expecting Brent crude to average over $100 per barrel in March before gradually easing to the low $70s later in the year, assuming the disruption to oil flows proves temporary. However, the investment bank warned that if the Strait of Hormuz remains effectively closed for an extended period, prices could reach higher peaks and end the year at elevated levels. For American consumers, surging oil prices have translated directly into higher costs at the pump, with the national average price for gasoline reaching $3.69 per gallon and gas prices exceeding $3 in all 50 US states for the first time since 2023. Kevin Hassett, director of the US National Economic Council, acknowledged Sunday that "the big problem right now would be energy prices" and confirmed that the administration is "watching and monitoring closely".
With the conflict now entering its fourth week, hopes for an early ceasefire appear increasingly remote. The Trump administration has reportedly rejected diplomatic efforts from Middle Eastern allies, while Iran has also refused any possibility of compromise until airstrikes cease. Iranian Foreign Minister Abbas Araghchi stated Sunday that there has been "no discussion of a ceasefire" and questioned the logic of negotiations with the United States given that talks were ongoing when Washington decided to attack. Iranian parliament speaker Mohammad Bagher Ghalibaf declared emphatically that "certainly we aren't seeking a ceasefire," adding that "we believe the aggressor must be punished and taught a lesson that will deter them from attacking Iran again". As both sides dig in, global markets remain on edge over the prospect of prolonged disruption to energy supplies and regional stability, with the only certainty being continued volatility in the weeks ahead.