The U.S.-Israeli war on Iran, now in its fifth week, is continuing to push up energy prices and weigh on global financial markets, even after President Donald Trump paused strikes on Iran’s energy infrastructure until April 6.
U.S. stocks opened low again March 27, extending a slump from the previous day that sent the Nasdaq composite into correction territory. Both the tech-heavy index and the S&P 500 had closed March 26 at their lowest levels since September 2025, according to The Wall Street Journal.
Meanwhile, oil prices have begun climbing again. Brent crude, the global benchmark for oil prices, traded at about $111 per barrel the morning of March 27 – more than 50% higher than the pre-war levels of around $72 in late February.
The spike stems from Iranian attacks on energy infrastructure and shipping in the Strait of Hormuz – a vital waterway carrying roughly one-fifth of global oil and gas supplies – which have sharply curtailed exports from the Persian Gulf.
European benchmark gas prices have jumped more than 60% since the war began, Reuters reported March 26. U.S. gasoline prices hit $3.98 per gallon the morning of March 27, according to AAA data, up nearly $1 from pre-war levels.
Meanwhile, the U.S. Postal Service announced March 25 it is seeking approval for a temporary 8% price increase that would “affect base postage prices” to offset rising transportation fuel costs. If approved, the increase would take effect April 26 and last through January 2027, Zeale News reported.
Jet fuel prices have more than doubled (up about 106%) compared with a month ago, according to the International Air Transport Association, which reported data for the week ending March 20.
Consumer spending – which accounts for roughly two-thirds of U.S. economic activity – is also expected to soften as uncertainty tied to the Iran war increases. Reuters reported March 24 that new business surveys of purchasing managers in the U.S., Europe, and Japan indicate the Iran war is weighing on global economies, with respondents reporting weaker activity and rising inflation expectations.