Traders Drive Oil Prices Up 20% as Middle East War Fears Hammer Asian Stocks

Oil prices surged sharply on Middle East war fears, with oil futures jumping above $110 a barrel — about a 17% one‑day rise — driven by concerns that fighting could disrupt flows through the Strait of Hormuz.

“Oil futures surge 20% past $110 as war fears hammer Asian stocks, bitcoin steady near $67K Nikkei drops more than 6%, and Kospi slides about 8% as traders price supply disruption risk, while prediction markets show strong odds of $120 crude”

CoinDesk

Asian equity markets opened sharply lower as the energy shock hit regional bourses.

CoinDesk

CoinDesk reported Japan’s Nikkei fell more than 6% and South Korea’s Kospi about 8%.

Devdiscourse described the same session as markets plunging after oil surged toward $120 a barrel, noting slightly different index moves (Nikkei down more than 5%, Kospi down about 6%).

The two outlets together underscore a large, volatile move across oil and Asian equities, with some divergence in the exact equity percentages reported.

Market participants linked the spike directly to geopolitical tensions and risks to supply infrastructure.

CoinDesk attributes the rally to "Middle East tensions and fears that fighting could disrupt flows through the Strait of Hormuz," while Devdiscourse highlights that the spike was "exacerbated by conflicts hitting oil infrastructure," which raised immediate concerns about supply-side disruption.

Devdiscourse

CoinDesk noted that cryptocurrencies were relatively calm—"bitcoin stayed near $67,000 while ether and solana posted small gains"—suggesting traders viewed the move as energy-specific rather than a broad risk-off event.

Derivatives and prediction markets reflected heightened odds of even higher crude prices, while some traders bet on a correction.

“Oil futures surge 20% past $110 as war fears hammer Asian stocks, bitcoin steady near $67K Nikkei drops more than 6%, and Kospi slides about 8% as traders price supply disruption risk, while prediction markets show strong odds of $120 crude”

CoinDesk

CoinDesk flagged Polymarket pricing a roughly 76% chance that crude hits $120 by the end of March, even as "negative funding on some oil perpetuals signals sizable bets on a pullback."

Those market signals accompany macro concerns.

CoinDesk reported markets still overwhelmingly expect the Federal Reserve to hold rates in March (about a 98% probability) and warned that "a sustained oil rally would add upside inflation pressure for policymakers to consider."

Devdiscourse added regional economic context, noting that net oil importers like Thailand could face higher fuel and consumer‑price inflation as a result.

Devdiscourse warned the surge raises global inflation risks and threatens economic stability, especially for countries that rely on imported crude.

It listed likely domestic impacts as widening trade deficits, pressure on businesses and households, and tougher choices for central banks balancing inflation control and growth.

Devdiscourse

CoinDesk’s coverage reinforces that policymakers are watching the situation closely because energy-driven inflation would complicate the prevailing expectation that rates will be left unchanged in the near term.