Markets tumble as Iran war fuels energy shock
Global stocks fell and bond yields rose for a third session as the Iran war raised fears of a prolonged energy shock, forcing central banks to weigh fighting inflation against supporting growth. Gold and other safe havens rallied, while oil‑dependent economies like India scrambled for alternative supplies and emergency US LPG shipments—highlighting who will be hit hardest if disruptions continue. (reuters.com 1) (reuters.com 2) (timesofindia.indiatimes.com)
S&P 500 futures were down after the cash index fell about 0.3% on March 20, extending the selloff that has erased roughly 3.7% since the war began at the end of February. (nytimes.com) The U.S. 10‑year Treasury yield climbed to about 4.39% on March 20 while the 2‑year hovered near 3.88%, reflecting a sharp repricing of rate expectations as bond markets sold off. (tradingeconomics.com) Brent crude hit roughly $112.33 a barrel on March 20 — its highest close since mid‑2022 — tightening the energy margin that traders say will feed through to consumer prices. (tradingeconomics.com) Traders have cut odds of 2026 monetary easing and are pricing a greater chance of hikes from the Bank of England and European Central Bank, while Fed Chair Jerome Powell warned higher energy prices will lift near‑term inflation. (money.usnews.com) (bloomberg.com) A Reuters factbox on March 20 flagged Germany, Italy, Britain and Japan as highly exposed advanced economies and named India, Turkey, Sri Lanka, Pakistan and Egypt among the emerging markets most vulnerable to an energy shock. (msn.com) India, which imports about 90% of its LPG needs, saw weekly shipments drop to roughly 270,000 tonnes in the week starting March 9 and rushed to line up emergency cargoes from the U.S., Norway, Canada and Russia while locking in a long‑term U.S. deal of about 2.2 million tonnes for 2026 (around 10% of annual imports). (bloomberg.com) (business-standard.com) Physical demand into gold ETFs has been strong this year — global physically backed gold ETFs recorded inflows of US$18.7 billion in January, underscoring continued investor appetite for safe‑haven exposure amid the shock to energy markets. (gold.org)
