Financial markets and the Iran war: close your eyes and get through

The catastrophe in the Persian Gulf is leaving traders on the stock exchanges strangely cold – for now. But there are warning signs. And the danger of stagnation and inflation at the same time.

March 20, 2026, 10:17 am

Article summary

Oil and gas infrastructure has become a target in the war between Israel, the US and Iran, threatening supplies to Europe and Asia. Iranian attacks have crippled 17 percent of Qatar’s liquefied natural gas export capacity. Natural gas facilities in the United Arab Emirates and refineries in Saudi Arabia and Kuwait were also hit. The prices for oil and gas have risen, but the financial markets reacted relatively calmly. Investors expect a quick end to the war, which is reflected in the relative calm. Still, there are warning signs, such as the drop in copper prices, that could indicate slowing economic growth.

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Benjamin Franklin adorns a dollar bill. But how much can $100 buy? The war increases the risk of stock market shocks and inflation.
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What energy experts have long warned about has now happened. The infrastructure for oil and especially gas is a target in Israel and the USA’s war against the Iran become. Iranian attacks have crippled 17 percent of Qatar’s liquefied natural gas (LNG) export capacity, QatarEnergy’s CEO told Reuters on Thursday. It will take years until the damage is repaired. This endangers the supply of Europe and Asia.

It was a counterstrike after the Israeli Air Force bombed the Iranian part of the South Pars gas field, a major gas field exploited by both Qatar and Iran. Natural gas facilities in the United Arab Emirates and refineries in Saudi Arabia and Kuwait were also hit by Iranian drones and missiles. In addition, the Strait of Hormuz, the strait in the Persian Gulfcontinues to be blocked by Iranian forces with a few exceptions. Until the conflict erupted, tankers transported up to a fifth of the oil delivered by sea every day through the logistical bottleneck. It’s a worst-case scenario for global energy markets. The prices on oil and gas then rose again.