US Dollar Rises 1.1%, Gold & Silver Crash! 4 Impacts of Iran War on Global Market
Jakarta, Pintu News – Geopolitical tensions in the Middle East have once again shaken global financial markets. The conflict involving Iran triggered a surge in energy prices while strengthening the US dollar. The impact was felt widely, ranging from global stocks, gold, to industrial commodities that experienced significant pressure.
This has triggered a change in investor sentiment across financial markets. Many market participants began to reduce exposure to riskier assets and seek instruments that are considered more liquid, including cash and some crypto assets such as Bitcoin that often experience high volatility during global turmoil.
1. Energy Prices Surge by 37%, Triggering Market Panic
The surge in energy prices was the main trigger for the global market turmoil. Brent crude oil prices surged to around $83 per barrel or equivalent to Rp1,403,281, up around 37.1% since the beginning of the year. Meanwhile, natural gas prices in the European TTF market also jumped sharply by 27.8% in Euro terms.
The surge was triggered by the growing risk of global energy supply disruptions due to conflict in the Middle East. Military strikes involving the United States and Israel against Iran sparked fears of a wider conflict escalation. The situation has made energy markets highly sensitive to geopolitical developments.
Rising energy prices are also raising global inflation concerns. As energy costs rise, production costs in various sectors rise, potentially slowing world economic growth.
2. World Stock Exchanges Compactly Weakened
Surging energy prices and geopolitical uncertainty triggered a major sell-off in global stock markets. Global investors started to offload stocks to reduce portfolio risk amid the uncertain situation.
Some of the world’s major stock indices recorded significant declines, including:
- Japan’s Nikkei down 3.0%
- China’s CSI300 falls 1.5%
- Germany’s DAX plunges 4.2%
- London’s FTSE All-Share falls 3.3%
- US S&P500 down 2.2%
- MSCI World Index slips 2.7%
The decline was one of the biggest corrections in global stock markets since the middle of last year. Investors are concerned that geopolitical conflicts could worsen global economic conditions that are already facing inflationary pressures and high interest rates.
3. US Dollar Strengthens 1.1%, Gold and Silver Under Pressure
The strengthening of the US dollar has been one of the main impacts of the global market turmoil. The dollar index (DXY) recorded an increase of about 1.1%, recording its biggest daily gain since May last year.
The strong dollar makes the prices of precious metals such as gold and silver less attractive to international investors. Gold prices had previously touched around $5,600 per troy ounce or around Rp94,679,200, after briefly breaking $5,000 or around Rp84,535,000.
However, selling pressure made gold prices weaken again. Meanwhile, silver prices also experienced a sharp correction to touch around $80 per troy ounce or about Rp1,352,560, down about 19% from the previous four-week peak.
4. Bonds and Industrial Commodities Under Pressure
Market turmoil is not limited to stocks and precious metals. Global bond markets also came under pressure after yields on 10-year US government bonds rose about 0.13 percentage points in two days.
The rise in yields was the fastest in nine months. It reflects investors’ concerns about inflation triggered by the surge in energy prices. When inflation increases, central banks tend to keep interest rates high for longer.
Industrial commodities were also affected, especially base metals which are sensitive to global economic growth. Some of the price declines recorded include:
- Nickel fell about 3.5%
- Copper fell about 4.5%
In addition, the crypto and cryptocurrency markets also experience high volatility. Digital assets such as Ethereum and Ripple often experience sharp fluctuations when there is geopolitical uncertainty and changes in global investor sentiment.
Geopolitical Conflicts Shake Market Sentiment
The Iran war shows how geopolitical conflicts can have a major impact on global financial markets. Spikes in energy prices, a strengthening US dollar, and pressure on gold, silver, and industrial commodities created a domino effect across investment sectors.
Investors are now facing major challenges in managing portfolios amidst high uncertainty. Going forward, the direction of the United States interest rate policy and the development of geopolitical conflicts will be important factors that determine the stability of global markets, including the movement of crypto assets and cryptocurrencies.
Also Read: 5 Advantages of Pegadaian Gold Deposit
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash beforeinvesting. All activities of buying and selling Bitcoin (BTC) and other crypto asset investments are the responsibility of the reader.
Reference
- BullionVault. Gold Price Hits $1970 as Silver Jumps, Oil Spikes on Russia-Ukraine War, Dollar Rises. Accessed March 4, 2026.
