The escalation of the conflict in the Middle East has sent shockwaves through global markets: oil prices jumped sharply, the U.S. dollar strengthened, and equities declined. Brent crude rose 9% to around $79 per barrel — the largest single-day increase since 2020. Investors are concerned that disruptions to supply through the Strait of Hormuz could derail the global economic recovery and reignite inflationary pressure.

The expansion of U.S. and Israeli strikes on Iran has intensified geopolitical tensions and triggered a flight to safe-haven assets. Gold prices climbed more than 2%, reaching approximately $5,389 per ounce. Analysts say that further escalation could continue to support gold’s upward trend, especially amid elevated oil prices and inflation risks.

European stocks fell sharply as tensions in the Middle East worsened. The STOXX Europe 600 index declined 1.5%, hitting a two-week low. Major indices in Germany, France, and Spain also posted significant losses. Banking and airline stocks suffered the most: shares of HSBC, Barclays, and Standard Chartered dropped by up to 5%, while Lufthansa fell as much as 11%.

UK stock markets also closed lower on Monday. The FTSE 100 slipped 1%, and the FTSE 250 fell 1.3%. Although energy and defense companies such as Shell and BAE Systems posted gains, the banking and travel sectors experienced notable losses. Rising oil prices fueled concerns about accelerating inflation and reduced the likelihood that the Bank of England will cut interest rates in the near term.

Among companies with market capitalizations of at least $10 billion, Circle Internet Group, Inc. (CRCL), operating in financial technology and digital payment infrastructure, recorded the largest gain last week. Its shares rose 32.40% to $83.44. In second place was Keysight Technologies, Inc. (KEYS), a manufacturer of measurement and electronic testing equipment, with a 26.19% increase to $307.33. Paramount Skydance Corporation (PSKY), from the media and entertainment sector, ranked third with a 26.14% rise to $13.51.

Leading the large-cap decliners last week was pharmaceutical giant Novo Nordisk A/S (NVO), whose shares fell 21.02% to $37.45. It was followed by First Solar, Inc. (FSLR) from the solar energy sector, down 18.47% to $197.20. Zoom Communications, Inc. (ZM), the video conferencing and online meetings platform, rounded out the top three decliners with an 18.11% drop to $73.94.

In the United States, producer price growth in January exceeded expectations, reinforcing forecasts that the Federal Reserve will not resume interest rate cuts before its June meeting. The Producer Price Index (PPI) rose 0.5% month over month — one of the largest increases in more than three and a half years. Core producer inflation reached 3.6% year over year.

The eurozone manufacturing sector expanded in February at its fastest pace in nearly four years, driven by a rebound in new orders and rising output. The HCOB Manufacturing PMI compiled by S&P Global rose to 50.8, surpassing the 50-point threshold for the first time since last August. The recovery was led by Germany, while Italy, the Netherlands, Ireland, and Greece also recorded solid growth. Despite ongoing inflationary pressure, business confidence reached a four-year high.

On March 2, 2026, Armenia’s securities market saw the placement of government bonds totaling 3 billion drams, maturing on March 1, 2027. Three participants took part in the public auction, submitting total bids of 9.8 billion drams. The weighted average price of the placed bonds was 93.4 drams, with a yield of 6.9%.

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