Iran War Sends Global Markets Into Worst Crisis Since 2008

The war in Iran triggered a global financial crisis of intensity not seen since 2008.

“The war in Iran has led to a period of turmoil in global financial markets, prompting some investors and traders to avoid risk, which has made trading more difficult and more costly, in a situation closely watched by regulators”

Al-Yawm Al-Sabi'

Trading became more difficult and costly worldwide as market makers pulled back.

Al-Yawm Al-Sabi'

The bid-ask spread on the U.S. two-year Treasury widened by about 27% in March.

Short-dated UK Gilts suffered their worst month in nearly three years, rising about 90 basis points.

Global stocks lost about $14 trillion in value.

Brent crude surged from $80 to $110 per barrel at its peak.

The IMF warned the economic fallout could reach $2.8 trillion globally.

The oil price shock reverberated through global supply chains and consumer markets.

Brent crude surged from $80 to over $110 per barrel by mid-March.

CNBC

Chinese carriers increased fuel surcharges.

The closure of the Strait of Hormuz forced oil-importing nations to deploy naval assets.

Turkey began negotiations to secure alternative supplies from Azerbaijan.

Airline industries faced a projected $20 billion in costs.

Iran threatened to block exports as exports faltered.

“The Iran war and a mounting energy crisis battered UK government bonds in March, with short-dated Gilts registering their worst month in nearly three years”

International Financing Review

Iran's trade balance swung to a $1.6 billion deficit in March.

Pressure mounted on state finances as oil revenue plunged and military spending soared.

Turkey's stimulus package failed to stabilize the currency.