GOLD DECLINES 6 PERCENT AMID IRAN WAR JITTERS

Mon 23 March 2026:

The price of gold has slid sharply, reaching its weakest level since December 11 last year, after logging its worst week in about 43 years, as the escalating US-Israel war on Iran raises inflation concerns and higher global interest rates.

Spot gold fell 6 percent to $4,214.89 per 1 ounce (28.3 grams) extending losses into a ninth straight trading session.

The metal dropped more than 10 percent last week, its worst week since February 1983, and has also retreated more than 20 percent from its record peak of $5,594.82 an ounce reached on January 29.

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Asian stocks in the red as Iran war rattles markets

Asian markets are deep in the red this Monday morning, with Tokyo and Seoul leading the losses. South Korea’s KOSPI is down by as much as 5 percent in early trade, and markets are really beginning to price in longer-term disruption and sustained periods of higher energy prices.

Morgan Stanley is predicting a deeper downturn for Asia. It’s predicting equities could fall by as much as 20 percent in this region. That’s because, as we know, Asia is particularly vulnerable to energy increases, because it imports much of the energy via the Middle East, so it really feels the impact of that.

We’re also looking at reports of Iran saying it will let Japanese ships sail through the Strait of Hormuz, as part of its selective approach to blockading the waterway, and whether or not that’s going to have an impact on energy markets.

But oil prices remain elevated, and analysts are predicting that oil could rise to anywhere between $150 to $200 per barrel in the worst-case scenario. There are also warnings that damage to energy infrastructure in the Middle East means that all this is going to last longer, and it’s going to take longer for the situation to normalise.

IEA chief says global economy ‘facing a major threat’

Speaking at the National Press Club in Canberra, International Energy Agency (IEA) director, Fatih Birol. compared the current energy crisis with those of the 1970s and the impact of Russia’s 2022 invasion of Ukraine.

“This crisis, as things stand, is now two oil crises and one gas crash put all together,” Birol said.

“The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible… No country will be immune to the effects of this crisis if it continues to go in this direction. So there is a need for global efforts,” he said.

Birol added that at least 40 energy assets across the region had been “severely or very severely damaged” in the conflict and said the IEA is consulting with governments in Asia and Europe about the release of more stockpiled oil.

Earlier this month, IEA member nations had agreed to release a record 400 million barrels of oil from strategic stockpiles to combat the spike in global crude prices.

“If it is necessary, of course, we will do it. We look at the conditions, we will analyse, assess the markets, and discuss with our member countries,” he said.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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