Stock indices tumbled worldwide amid rising tensions in the Middle East, with the Nikkei 225 dropping 3.1%, while crude oil surged past $98 a barrel and the U.S. dollar index climbed to 106.4. The moves reflect a sharp shift toward risk aversion and safe-haven demand.
- Nikkei 225 declined 3.1% on March 2, 2026, marking its steepest daily drop in over 12 months.
- WTI crude oil surged to $98.10, a 6.4% increase driven by supply concerns.
- Brent crude exceeded $102 a barrel amid fears of regional supply disruption.
- The U.S. dollar index (DX=F) reached 106.4, reflecting strong safe-haven demand.
- VIX spiked to 28.7, indicating elevated market anxiety and risk aversion.
- Geopolitical tensions involving Iran prompted immediate repricing across global asset classes.
Global financial markets experienced a broad retreat on Monday, March 2, 2026, as escalating tensions involving Iran triggered a flight to safety. Equity indices across Asia and Europe declined, with Japan's Nikkei 225 falling 3.1%—its steepest single-day drop in over a year—as investor sentiment turned sharply negative. The sell-off extended to U.S. markets, where futures for the S&P 500 pointed to a lower open, signaling widespread risk reduction. The crisis in the Middle East spurred a surge in energy prices, with Brent crude futures breaching $102 per barrel and West Texas Intermediate (WTI) climbing to $98.10, up 6.4% on the day. This spike reflects market concerns over potential disruptions to oil supply routes through the Strait of Hormuz, a critical chokepoint for global crude flows. The energy sector saw immediate volatility, with major integrated oil companies posting double-digit percentage declines in early trading. Simultaneously, the U.S. dollar index (DX=F) rose to 106.4, its highest level since late 2023, as traders sought refuge in the greenback amid heightened geopolitical uncertainty. Meanwhile, the CBOE Volatility Index (VIX), often dubbed the