March 2026 brought violent turmoil in financial markets following the escalation of the conflict in the Middle East. Attacks by the United States and Israel on Iran have led to an almost complete stoppage of tanker traffic in the Strait of Hormuz, one of the most important oil supply routes in the world.
The rest of the article is below the video
As a result oil prices skyrocketed — within a few days, the price of Brent crude oil (on the London Stock Exchange) increased by over 40%, significantly exceeding USD 100. per barrel of raw material.
This is the biggest jump in oil prices in years. It was a consequence of investors' fears that the conflict would last for a long time and global supplies would be seriously disrupted.
It is worth treating this type of shocks in financial markets as a good thing investment school for the future. Below we indicate the possible market consequences and suggest how investors can benefit from it.
See also: “A strategic masterpiece”. The pipeline that saves the global oil market
Special offer
Crisis on the oil market. What are the consequences for business and financial markets?
Such a sharp increase in oil prices does not only affect the costs of fuel or transport. This is called supply shock — a sudden increase in the price of one of the key raw materials increases the operating costs of companies, increases inflation and may slow down global economic growth.
Higher fuel prices they increase costs in transport, logistics, aviation and production. This is what happens pressure on bond markets — higher inflation may even force central banks to increase interest rates, which in turn increases bond yields and makes access to credit more difficult.
See also: “The situation is more serious than in the 1970s.” Markets are reacting
In such situations, global stock exchanges also experience violent reactions – indexes fell both in the US, Asia and Europe. Investors fled the risk, fearing that the conflict would last for months.
The oil market crisis does not have to mean losses for investors. These industries often benefit
Paradoxically, however, such periods of turmoil may also provide opportunities to make money on the stock exchanges. It is worth remembering that oil price spikes are not only a blow to consumers, but also a great opportunity for companies that operate directly in industries closely related to energy. The most obvious group are producers of energy raw materials – refineries and oil companies. When the price of oil rises, their revenues tend to increase faster than their costs, which can translate into an increase in share prices.
An example of this in the first phase of the crisis after the attack on Iran was the growing quotations of Orlen on the Warsaw Stock Exchange, British Shell and BP.
The second group of companies that can profit in periods of crisis increases in oil prices are: enterprises related to services for the energy sector – service companies, drilling technology suppliers, raw material logistics and transmission infrastructure operators. As mining activity increases and the demand for increased production increases, their services become more valuable. Market analyzes show that oilfield service companies, such as global technology companies, often respond to crises with faster growth than raw material producers themselves.
Finally, it is worth mentioning companies from the defense industry. Every time geopolitical risk increases and the conflict spreads to new countries, investors turn their attention to companies related to military technologies. Not only because governments are increasing spending on security, but also because the sector is perceived as relatively stable in times of turmoil. As the conflict in the Persian Gulf region escalates, countries intensify purchases of equipment, army modernizations and orders from technology companies, which may strengthen the valuations of such entities.
The crisis on the oil market will end someday. What then?
When investing in specific companies in connection with a specific event, which in this case is the oil market crisis, it is worth having it right away plan B and exit optionwhen the situation changes.
When the geopolitical situation begins to calm down and oil prices return to lower, more stable levels, the profits of the previously mentioned companies may decline quickly, and investors anticipating such a turn of events may realize profits from shares in advance.
Oil companies usually make the most money when raw material prices are high, so as the market begins to normalize, their margins may shrink. Service companies serving the oil sector may also suffer because as oil prices fall, companies often reduce spending on new drilling, modernization and infrastructure projects, which reduces demand for their services.
In the case of defense companies, the increase in their valuations is often related to the tense geopolitical situation, so when the conflict subsides, governments may limit orders or shift budget priorities, which affects their revenues.
An investor must remember that markets react quickly – what looked like a “safe opportunity” during a crisis may lose momentum over time and the stock price will decline as emotions subside and the economy returns to more predictable conditions.
To sum up, the oil market crisis means high risk for the economy and drivers' wallets, but from an investor's point of view it can also reveal opportunities if the topic is approached responsibly and prudently. The most important thing is to understand that rising oil prices affect the entire financial market ecosystem – from inflation, through bonds, to stock prices. Properly selected energy and industrial companies, especially those with a strong market position and global reachmay at such times constitute a more stable part of the portfolio than many other industries that are more sensitive to economic fluctuations. Therefore, it is worth staying calm, observing the market and remembering that even in difficult times, there is no shortage of companies that can use crises to build their value.
Note: The information contained in the text is for informational purposes only and does not constitute an investment recommendation, information recommending or suggesting an investment strategy within the meaning of applicable regulations, or any other form of advice regarding the purchase or sale of financial products.
