Brent crude climbed to $113 a barrel, marking one of its highest points since the outbreak of the conflict.
The escalation has rattled investors, with futures markets signaling steep losses for equities as risk appetite deteriorates, reports The Guardian.
Oil remains the dominant driver of sentiment, and its trajectory continues to dictate broader market trends.
Natural gas prices have also surged, jumping 30 percent after strikes on Qatar’s Ras Laffan gas facility. The spike prompted US President Donald Trump to urge Israel and Iran to stop targeting energy infrastructure.
Still, analysts say it will take a significant shift in sentiment and positive developments to stabilize energy markets in the near term.
In the UK, labor market data offered some relief. The unemployment rate held steady at 5.2 percent, showing little change at the start of the year. Signs of renewed hiring emerged, with the Office for National Statistics reporting 6,000 additional payrolled workers in January and estimating another 20,000 in February.
Job vacancies remained stable, with declines among smaller firms offset by gains in larger companies. This suggests the employment outlook improved compared to late 2025.
The headline development, however, was wages retreating to their lowest level in five years. Pay growth slowed across both public and private sectors, which could ease inflationary pressures.
For the Bank of England, this data reinforces concerns about weak growth prospects while offering some relief on the inflation front.
Despite these domestic signals, the Middle East conflict continues to overshadow global markets. Energy prices remain volatile, and without a major de-escalation, investor confidence is unlikely to recover.
