Maybe the war in the Middle East will end soon. But it has become very expensive and is becoming more expensive at home and (obviously) in the combat zone.
Crude oil prices rose in early trading on March 19, as did prices at the pump, both in the United States and elsewhere. Gasoline futures prices rose.
And all of these moves are weighing on stocks entering the trading day. They are weighing the bonds. They are weighing on mortgage rates.
Gasoline prices have risen steadily since late February. The gain is now just over 30%, according to AAA data, which showed the U.S. average stood at $3.884 a gallon. The profit for the year is almost 37%.
Crude oil prices rose early on Thursday, March 19. Light, sweet crude, the U.S. benchmark, gained about 1% to $97.26 a barrel. Brent, the global benchmark, jumped 9.5% to a staggering $117.54 a barrel. (Yes, you read that right).
Brent will most likely reach $120 a barrel, the highest level since summer 2022.
The price of light, sweet crude oil has risen 69% this year. Brent is up 93%.
The catalyst for these latest price increases was Israel’s attack this week on Iran’s South Pars gas field in the Persian Gulf and Iran’s response: attacking the Ras Laffan industrial area in Qatar, causing fires and extensive damage.
Here I offer a quick explanation.
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Qatar is involved because it owns the North Dome natural gas field in the Persian Gulf.
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That field borders Iran’s South Pars field.
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The two fields combined represent the largest natural gas field in the world, according to the International Energy Agency.
And Qatar is the world’s largest exporter of liquefied natural gas, which is processed in the Ras Laffan industrial zone. Except it can’t ship any gas because the Strait of Hormuz, at the eastern end of the Persian Gulf, is effectively closed.
The result? Wholesale LNG prices in Europe rose by up to 25% on March 19, the BBC reported. China and India are deeply concerned, as they were the largest buyers of Qatar gas in 2025.
In other words, the stakes are high now. For everyone.
So high that President Donald Trump declared on Wednesday night, March 18, that Israel would not attack South Pars again. Still, he promised to blow up the entirety of South Pars if Qatari gas is attacked again.
So high that Iran published a list of energy sites in the Persian Gulf it could target, and Saudi Aramco, the state oil company, began evacuating several facilities.
Japan’s Nikkei 225 index fell nearly 1,900 points, or 3.4%, to 53,373. Germany’s Dax index is down 2.3%. at 22,962. Britain’s FTSE 100 index is down 2% to 10,114. India’s Sensex index is down 3.3% at 74,207.