📉 Global Markets Plunge as Mideast Tensions Drive Oil Surge

Global equity markets faced a sharp sell-off on Tuesday as escalating conflict involving Iran fueled fears of sustained economic damage. The downturn was led by soaring energy costs, with oil prices approaching the critical US$ 100 per barrel threshold. • Stock Market Impact: Wall Street saw major declines with the S&P 500 dropping 2.4%, marking its worst performance since late 2024. The Dow Jones shed 1,232 points (2.5%), while the Nasdaq fell 2.7%. • Regional Breakdown: Asia: South Korea’s Kospi plunged 7.2%, its steepest decline in nearly two years, driven by its status as a major energy importer. Japan’s Nikkei 225 dropped 3.1%. Europe: Germany’s DAX lost 3.9% as natural gas prices surged due to regional instability. • Commodities: Gold prices fell 4.9% to US$ 5,051 per ounce, retreating from recent highs above US$ 5,300 as investors recalibrated "safe-haven" positions. • Relevance to Sri Lanka: As a net importer of fuel and energy, the spike toward US$ 100 oil poses significant risks to Sri Lanka's trade balance and domestic inflation. Sustained global volatility may also impact investor appetite for emerging market debt and ICT/BPM service exports. _Note: Summary based on provisional global market data as of March 4, 2026._