NEW YORK / LONDON — Global financial markets were thrown into chaos on Friday, March 6, 2026, as a perfect storm of geopolitical escalation and a “brutal” U.S. labor report triggered a massive sell-off in equities and a historic spike in energy prices.
1. Oil Crisis: Brent Hits $92 as War Intensifies
Crude prices skyrocketed on Friday following news that oil fields in southern Iraq and the Kurdistan region had come under attack, forcing at least one U.S.-run field to shut down.
- Price Action: International benchmark Brent North Sea crude surged 9% to hit $92.80 per barrel, its highest level in nearly two years. The U.S. benchmark, West Texas Intermediate (WTI), soared 12% to over $91.
- Trump’s Ultimatum: Sentiment soured further after U.S. President Donald Trump declared that only the “unconditional surrender” of Iran would end the conflict. Analysts noted this dashed hopes for a short war and signaled a protracted disruption to the Strait of Hormuz, where 20% of global oil flows are currently “effectively shut.”
- Supply Fears: Kuwait has also reportedly begun cutting production due to a lack of storage capacity as maritime traffic in the Gulf remains paralyzed.
2. U.S. Jobs “Shock”: 92,000 Jobs Lost in February
While oil prices spiked, the U.S. economy delivered a shocking blow with its February labor report, missing all professional forecasts.
- The Data: The U.S. unexpectedly lost 92,000 jobs last month, a stark contrast to the predicted addition of 55,000 hires.
- Unemployment: The national unemployment rate climbed to 4.4%.
- Sector Impact: Healthcare saw a significant decline of 28,000 jobs (partially due to strikes), while the tech sector continued its trend of heavy layoffs, most recently from the firm Block.
3. Stock Market Sell-off & “Stagflation” Fears
The combination of a weakening labor market and surging energy costs fueled fears of stagflation—a dangerous mix of stagnant growth and high inflation.
- Wall Street: The Dow Jones lost 450 points (-1.3%), while the Nasdaq fell nearly 2%.
- Europe: Major indices in London (FTSE 100) and Paris (CAC 40) closed down by roughly 1%.
- Fed Outlook: The crisis has “put the Fed between a rock and a hard place.” While the weak jobs report would typically signal a need for interest rate cuts, the oil-driven inflation spike may force the central bank to keep rates high. Markets have now pushed back the expected timing of the next rate cut from June to September.
4. Local Impact: Philippines and Beyond
- Peso Under Pressure: The Philippine peso fell to the 59:$1 level as investors fled to the safety of the U.S. dollar.
- Pump Prices: Local experts warn that diesel prices in the Philippines could see a massive ₱20 per liter hike in the coming weeks if the Gulf remains blocked.