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March 19, 2026 – 11:36

(Bloomberg) — Global stocks extended losses after a fresh surge in oil and gas prices deepened concerns that the war in the Middle East will stoke inflation and hit growth. Bonds tumbled amid a second day of major central bank meetings.

European equities fell 2%, heading for the lowest level this year. A benchmark for Asian stocks dropped 2.8%. Futures for the S&P 500 were little changed after the US benchmark wiped out its advance for the week in the previous session.

The selloff comes as Brent extended gains since the start of the conflict to nearly 60%, climbing toward $114 a barrel after attacks on some of the Middle East’s most important energy facilities. West Texas Intermediate fluctuated as the gap between US crude and the rest of the world widened. European natural gas jumped as much as 35%.

Oil’s surge already has global central bankers fretting about price pressures. The Bank of Japan kept interest rates unchanged on Thursday, following a hold by the Federal Reserve on Wednesday, with both signaling the conflict had clouded the policy outlook.

“The mood is clearly risk-off this morning, with markets still digesting a toxic mix of geopolitics and central bank messaging,” said Mathieu Racheter, head of equity strategy at Julius Baer. “The renewed escalation in the Middle East is reviving stagflation concerns just as investors were getting more comfortable on inflation up until March.”

Yields on government debt surged in Europe and Asia. Traders cemented bets on two rate hikes by the European Central Bank this year and are now leaning toward a similar move by the Bank of England. Both are due to announce decisions later today, after Swiss and Swedish policymakers left rates unchanged.

The rate on two-year UK gilts rose 12 basis points to 4.22%, the highest since March 2025. The yield on German bunds with a similar duration advanced seven basis points to 2.50%. The yield on two-year Treasuries was 3.81%, an increase of three basis points.

Gold fell 2.5% below $4,700 an ounce. The dollar was little changed. The Japanese yen fell 0.4%, with traders on alert for the yen’s potential breach of 160 against the dollar.

“Escalating attacks on the energy infrastructure in the Middle East are raising the risk of a lasting impact on global oil and gas supply,” said Wolf von Rotberg, equity strategist at Bank J. Safra Sarasin. “The current market mood is unlikely to change until the escalation momentum is broken and oil prices normalize again.”

What Bloomberg Strategists Say…

“The widening Brent–WTI spread highlights that the impact of the conflict in Iran will be uneven, with European and Asian assets facing a more severe stagflationary shock than US counterparts.”

— Skylar Montgomery Koning, macro strategist. For the full analysis, click here.

Corporate Highlights:

Samsung Electronics Co. plans to spend more than 110 trillion won ($73.3 billion) on capital expenditure and research in 2026, reflecting expansions in memory chip capacity as well as exploration into fields such as AI. HSBC Holdings Plc is weighing a wave of deep job cuts over the coming years as Chief Executive Officer Georges Elhedery bets on AI to shrink its middle and back office footprint. Micron Technology Inc. warned that it will need to spend heavily on production to meet burgeoning demand, overshadowing a generally upbeat forecast from the largest US maker of computer memory chips. Elliott Investment Management has built a significant stake in Align Technology Inc., the maker of Invisalign teeth-straightening products, according to people familiar with the matter. Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 6:30 a.m. New York time Nasdaq 100 futures fell 0.2% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 fell 2% The MSCI World Index fell 0.6% Currencies

The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1469 The British pound rose 0.1% to $1.3274 The Japanese yen rose 0.4% to 159.22 per dollar Cryptocurrencies

Bitcoin fell 1.2% to $70,407.09 Ether fell 0.2% to $2,182.22 Bonds

The yield on 10-year Treasuries advanced one basis point to 4.27% Germany’s 10-year yield advanced four basis points to 2.98% Britain’s 10-year yield advanced eight basis points to 4.82% Commodities

West Texas Intermediate crude fell 0.1% to $96.22 a barrel Spot gold fell 2.8% to $4,684.79 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Neil Campling.

©2026 Bloomberg L.P.