World Business Report Iran: War in Middle East rattles global markets
Mar 2, 2026
Paul Charles, travel industry consultant and CEO of the PC Agency, outlines flight cancellations and the costly operational chaos for airlines. Carol Nackley, energy economist and CEO of Crystal Energy, analyses volatile oil and LNG price shocks and regional stability risks. Marcus Baker, Global Head of Marine and Cargo at Marsh McLennan, explains rising war risk premiums and how insurers mark enhanced-risk shipping zones.
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Markets React Fast To Middle East Strikes
- Global markets fell immediately with London down ~1.3% and Europe over 2% while Brent rose nearly 8%.
- Jane Sydenham links equity falls and an ~8% average energy price spike to strikes and refinery shutdowns including Saudi and Qatari outages.
Short Price Shocks Likely But Sustained Instability Is The Real Risk
- Short spikes in oil and LNG are manageable because global supplies exist and demand is not booming, so triple-digit oil prices are unlikely.
- Carol Nackley warns the bigger risk is sustained instability harming global trade and economic growth, not just a temporary price jump.
Energy Price Moves Spread Into Everyday Inflation
- Higher oil and LNG feed through into inflation because hydrocarbons are inputs for fuels and petrochemicals used in plastics, medicine, and cosmetics.
- Carol Nackley emphasises sustained higher prices would push costs across many consumer goods.