Gulf Equities Plummet As Iran Closes Strait Of Hormuz

On March 1, 2026, the situation in the Middle East escalated dramatically as Gulf equities plummeted following U.S. and Israeli strikes on Iran. Tehran announced it had effectively closed the Strait of Hormuz, a critical oil shipping route, leading to expectations that U.S. crude oil prices could surge by 9% when trading resumes. This closure has reportedly prompted the halt of some oil shipments, further exacerbating fears of prolonged geopolitical instability. In a significant development, OPEC+ has agreed in principle to a modest oil output increase of 206,000 barrels per day in response to the disruptions caused by the conflict, although analysts caution that the group has limited spare capacity to increase supply significantly (Business Recorder). Oil prices jumped to $73 per barrel, the highest level since July, with forecasts suggesting a potential increase of 5-15% when markets reopen (Financial Times). Analysts from Barclays have raised their Brent crude oil price forecast to about $100 per barrel, reflecting the heightened risk in the region (The Guardian).