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View all(77)📈 Global Oil Prices Plunge 13% as Geopolitical Tensions Ease
Global Markets: Crude oil prices saw a sharp decline on Monday following U.S. President Donald Trump's decision to postpone military strikes on Iranian energy infrastructure and power plants. Price Benchmarks: • Brent crude futures dropped approximately $17 (15%), hitting a session low of US$ 96.00 per barrel. • U.S. West Texas Intermediate (WTI) fell by $13 (13.5%), reaching a session low of US$ 85.28 per barrel. National Context: For Sri Lanka, a sustained drop in global oil prices is critical for reducing energy costs and easing pressure on foreign exchange reserves. Lower fuel prices typically support the transportation and manufacturing sectors, helping to manage domestic inflation. _Data based on reports from 23 March 2026._
📈 Global Energy Shock: Asia Markets Slide as Gulf Conflict Escalates
Regional markets plummeted on Monday as rising geopolitical tensions in the Gulf sent oil prices on a volatile trajectory, severely impacting net energy importers across Asia. • Market Performance Japan’s Nikkei fell 3.8% (down 13% in March), while South Korea’s market dropped 5.2%. MSCI’s Asia-Pacific index (ex-Japan) shed 2.5%; Chinese blue chips declined 1.9%. U.S. 10-year Treasury yields hit an eight-month peak of 4.4150% as inflation fears mount. • Energy & Commodities Brent crude rose to US$ 112.62/barrel, marking a 55% increase this month. Singapore jet fuel has surged 175% this year, while Asian LNG climbed 130%. Bunker fuel price spikes are driving up shipping & logistics costs, while rising fertilizer prices threaten global food security. • Economic Outlook Markets have abandoned hopes for monetary easing, now pricing in potential rate hikes to combat the energy-led inflationary pulse. The crisis is described by the IEA as potentially more severe than the combined oil shocks of the 1970s. High energy costs and rising yields are clouding corporate profit outlooks and pressuring fiscal budgets globally. • Currency & Gold The US$ remains a dominant store of liquidity, benefiting from the U.S. status as a net energy exporter. Gold slipped 2.6% to US$ 4,371/oz as investors pivot toward expectations of higher global interest rates.
## CSE Slumps 4.85% Weekly Amid Middle East Crisis 📉
The Colombo stock market faced a volatile week as geopolitical tensions continue to erode investor sentiment, despite a minor recovery during the final session. • Market Performance ASPI dropped 4.85% (1,052.82 points) to close at 20,639.73. S&P SL20 (blue-chip index) declined 5.46% (332.46 points). Total market value loss of Rs. 1.06 trillion since the Middle East conflict began on Feb 28. • Sector & Trading Activity Capital Goods led daily turnover (42%), followed by Banking and Insurance (25%). Investors engaged in bargain hunting within the Banking sector. Top positive contributors included SAMP, HAYL, JKH, DOCK, and MELS. • Investor Sentiment Foreign investors remained net sellers with a net outflow of Rs. 783 million. High-Net-Worth (HNW) activity was elevated, specifically in JKH (Rs. 628 million in crossings), while retail participation remained subdued. Daily turnover reached Rs. 4.4 billion, supported by easing global oil prices. _Note: Summary based on provisional market data as of March 21, 2026._
Global Markets Update: Oil Retreats from $119 Peak Amid Iran Conflict 📈
Global markets remain volatile as energy prices react to escalating tensions in the Middle East following strikes on Gulf infrastructure. • Energy & Commodities • Brent Crude fell 0.4% to US$ 108.19/bbl, pulling back from a session high of US$ 119. • US Crude (WTI) declined 1.2% to US$ 94.40/bbl. • Safe-haven assets saw gains: Gold rose 1.8% to US$ 4,688.50/oz, while Silver climbed 1.3%. • Global Equity Markets • Asian Markets: Mostly lower; Hong Kong’s Hang Seng dropped 1%, and China’s Shanghai Composite fell 1.2%. India’s Sensex bucked the trend, gaining 1%. • Wall Street: US indices closed in the red; the S&P 500 slipped 0.3% and the Dow Jones fell 0.4%. • Currency Trends • The US Dollar strengthened against the Yen (158.37), while the Euro weakened slightly to $1.1570. The retreat in oil prices provides a slight breather for oil-importing nations like Sri Lanka, though sustained high prices near the US$ 110 mark continue to pose risks to transportation and manufacturing costs. Based on provisional market data (March 21, 2026).
📈 Global Oil Prices Retreat Amid De-escalation & Supply Boost
Oil prices softened on Friday as international efforts to secure the Strait of Hormuz and U.S. measures to increase supply eased supply chain anxieties. This provides a potential cooling effect on global energy costs, critical for Sri Lanka’s fuel imports and inflation management. • Price Movements: Brent futures fell 1.3% to $107.29/bbl, while WTI dropped 2.0% to $94.22/bbl. Despite the daily dip, Brent remains on track for a nearly 4% weekly gain following recent geopolitical tensions in the Gulf. • Supply & Logistics: Strait of Hormuz: European nations and Japan have committed to ensuring safe passage through this chokepoint, which handles 20% of global oil and LNG. U.S. Interventions: The U.S. may remove sanctions on stranded Iranian oil and consider further Strategic Petroleum Reserve releases. Production: North Dakota's output is expected to rise as inactive wells restart, adding further downward pressure on prices. • Market Outlook: Analysts suggest that while "war premiums" are unwinding due to diplomatic engagement, the market remains sensitive. Any fresh hits to energy infrastructure or tanker routes could quickly reverse these gains. _Source: Reuters (Provisional Data)_ ---
📈 Yields Surge Across Secondary Bond Market Amid Global Risks
The secondary bond market saw a sharp upward trend yesterday, with yields spiking by 20–30 basis points across the curve. This shift was triggered by a deterioration in global risk sentiment following a surge in Brent crude to nearly US$ 117 per barrel and heightened geopolitical tensions in the Middle East. • Secondary Bond Market Performance: Selling pressure was broad-based across all maturities, though buying interest at higher yield levels eventually capped the rise. • 2027 Maturity: Traded between 8.55%–8.60%. • 2029 Maturities: Range expanded significantly to 9.70%–10.10%. • 2034 Maturities: Reached highs of 10.95%–11.12%. • Total Transacted Volume (18 March): Rs. 51.91 Bn. • Money Market & Liquidity: • Net Liquidity Surplus: Recorded at Rs. 283.00 Bn. • Central Bank Intervention: The DOD drained Rs. 100.00 Bn to manage excess liquidity. • Overnight Rates: Call money and Repo weighted averages stood at 7.58% and 7.60% respectively. • Forex Market: The USD/LKR spot exchange rate closed slightly weaker at 311.50/311.65, compared to the previous close of 311.30/311.50. The total traded volume for the day was US$ 38.45 Mn. _Note: Market sentiment remains sensitive to global energy prices and central bank inflation warnings._
📈 Oil Surges 3% Following Iranian Strikes on Mideast Energy Hubs
Global oil benchmarks spiked on Thursday as geopolitical tensions escalated following Iranian attacks on several key energy facilities in the Middle East, including major sites in Qatar, Saudi Arabia, and the UAE. • Price Movements: Brent futures rose by 3.44% (US$ 3.69) to US$ 111.07 per barrel. U.S. West Texas Intermediate (WTI) increased by 2.38% (US$ 2.29) to US$ 98.61. WTI continues to trade at its widest discount to Brent in 11 years. • Sector Impact & Infrastructure: QatarEnergy reported "extensive damage" to the Ras Laffan LNG hub. In the UAE, operations at the Habshan gas facilities and Bab oil field were partially shut. Saudi Arabia intercepted four ballistic missiles targeting Riyadh and a drone strike on a gas facility. • Regional Context: The escalation follows strikes on Iran’s South Pars gas field. With no immediate signs of de-escalation or the reopening of the Strait of Hormuz, market analysts expect prices to remain supported by high risk premiums. • Economic Outlook: For Sri Lanka, sustained high global oil prices typically exert pressure on foreign exchange reserves and domestic energy costs, impacting the transportation and manufacturing sectors. The U.S. is reportedly considering troop deployments to secure oil tanker passage through the region.
Global Markets Slump as Middle East Conflict Escalates; Oil Prices Surge 📈
Global financial markets faced a sharp downturn on Thursday following a major escalation in the conflict involving the U.S., Israel, and Iran, heightening stagflation risks. • Energy Market Impact: Brent crude futures rose 4.5% to US$ 112.19 per barrel, while U.S. crude reached US$ 97.07 (+1%). Natural gas prices spiked over 6% following retaliatory strikes on energy infrastructure in the Gulf. • Currency Volatility: The Japanese Yen wobbled near the critical 160 per dollar threshold. The U.S. Dollar remains the preferred safe-haven, with the Dollar Index up 2.5% this month as the Fed signals a cautious approach to rate cuts. • Equities Downturn: Major Asian indices saw heavy selling; Japan’s Nikkei dropped 2.5% and South Korean equities fell 1.5%. European futures are trading down by over 1%. • Monetary Policy: The Bank of Japan maintained interest rates at 0.75%. Central banks, including the ECB and Bank of England, are expected to hold rates steady today while assessing the impact of rising energy costs on global inflation and growth. • Economic Outlook: Analysts warn this escalation marks a shift from a geopolitical event to a macro-economic crisis, directly impacting the "plumbing" of the global energy system and threatening a prolonged period of low growth and high inflation.
T-Bill Yields Hold Steady Amidst Under-Subscribed Rs. 120 Bn Auction 📈
• Treasury Bill Auction: Weighted Average Yield Rates (WAYR) remained unchanged across all tenors. The 91-day stood at 7.61%, 182-day at 7.91%, and 364-day at 8.23%. • Auction Performance: The auction was significantly undersubscribed, raising only Rs. 60.79 Bn (50.66%) of the Rs. 120 Bn offered. The bid-to-cover ratio was recorded at 1.73 times. • Secondary Bond Market: In contrast to T-Bills, bond yields continued an upward trend driven by bearish sentiment. This is linked to the Middle East conflict, rising oil prices, and potential fuel rationing affecting the broader transport and energy sectors. • Yield Specifics: Notable trades included the 2026 maturity at 8.00%-8.10%, while longer-term 2035 maturities reached 10.98%. Total secondary market volume for March 17 was Rs. 16.13 Bn. • Liquidity & Forex: The money market maintained a net liquidity surplus of Rs. 341.21 Bn. In the forex market, the USD/LKR spot rate closed slightly wider at 311.30/311.50, with a daily traded volume of US$ 57 Mn. _Note: Data based on provisional auction and market results as of March 19, 2026._
📈 CSE Rebounds: ASPI Gains 222 Points After 5-Day Slump
The Colombo stock market staged a recovery today (March 18), breaking a five-session losing streak as investor sentiment improved. • Market Performance: The All Share Price Index (ASPI) climbed by 222.54 points to close at 20,640.63. • Blue-chip Movement: The S&P SL20 Index, representing the market's most liquid stocks, saw a marginal gain, ending the session at 4,058. • Liquidity: Market turnover reached Rs. 5.27 billion, reflecting active participation during the rebound. The recovery provides a much-needed breather for the capital markets and financial services sector following a week of heavy sell-offs.
📈 Asian Markets Rally as Oil Prices Eases Amid Middle East Tensions
Global markets showed resilience on Wednesday as oil prices retreated slightly, providing a temporary breather for Asian equities despite ongoing geopolitical volatility. • Market Performance: MSCI Asia-Pacific index rose 1.2%, while Japan's Nikkei rallied 2%. Chinese blue-chips inched up 0.1% and Hong Kong's Hang Seng gained 0.3%. • Energy Sector: Brent crude dropped 1% to US$ 102.28 per barrel, and WTI fell 1.6%. Despite the dip, the Strait of Hormuz remains largely shut, keeping supply risks high. Analysts warn prices may reprice higher if the blockade persists. • Global Policy Focus: All eyes are on the U.S. Federal Reserve meeting today. Markets are weighing whether the oil shock will lead to stickier inflation, potentially shifting the "dot plot" to project zero rate cuts for 2026. • Currency & Yields: The U.S. Dollar weakened slightly, with the Euro at $1.1539. The Japanese Yen steadied at 159 per dollar, avoiding the critical 160 intervention level. 10-year Treasury yields remained flat at 4.20%.
Oil Prices Ease as Iraq Exports Resume Amid Middle East Tensions 📉
• Market Impact: Global oil prices edged lower on Wednesday, paring back previous sharp gains. Brent crude futures fell 0.65% to US$ 102.75 per barrel, while U.S. WTI dropped 1.23% to US$ 95.03 per barrel. • Supply Relief: The Iraqi government and Kurdish authorities reached a deal to resume exports via Turkey’s Ceyhan port. Flows are expected to start at 100,000 bpd; however, analysts note this remains a minor fraction of the 2 Mn bpd Iraq has lost during the ongoing conflict. • Geopolitical Risks: Despite the export deal, Brent remains above US$ 100 as the conflict with Iran shows no signs of de-escalation. Total production from Iraq’s southern fields has plunged 70% to 1.3 Mn bpd due to the closure of the Strait of Hormuz, a vital chokepoint for 20% of global supply. • Regional Volatility: Tensions spiked following the death of Iran’s security chief in an Israeli attack and subsequent U.S. military strikes on Iranian coastal missile sites. Iran has reportedly rejected all de-escalation offers from intermediaries. • Inventory Data: U.S. crude stocks rose by 6.56 Mn barrels for the week ended March 13 (API data), significantly higher than the 380,000-barrel increase anticipated by analysts, providing further downward pressure on prices.