International oil prices fell during trading on March 18, with WTI crude dropping more than 2% intraday and ICE Brent crude declining over 1.5%.
China's A-share petroleum and petrochemical sector also moved lower. Geo-Jade Petroleum Corporation fell more than 8%, while Beiken Energy Group Co.,Ltd., Tong Petrotech Corp., and Xinjiang Zhundong Petroleum Technology Co.,Ltd. all experienced significant declines.
Gold and silver prices fell simultaneously, with the spot silver price dropping to near $78 per ounce.
Julius Baer Group suggested that the current high oil price environment is unlikely to persist, noting that the safe passage of vessels friendly to Iran is a key dynamic to monitor. OCBC Group Research indicated that Brent crude prices could remain elevated around $100 per barrel until mid-2026. The conflict between the US and Iran has entered its third week with no reliable path to de-escalation. Furthermore, supply routes through the Strait of Hormuz remain severely constrained, as no US partners have responded to former President Trump's call for joint military action to reopen the strait.
Market analysts pointed out that the widely anticipated safe-haven attributes of precious metals have failed to materialize, attributing this shift to a fundamental change in trading logic. The market's focus has moved from seeking safety to concerns about stagflation and diminished expectations for looser monetary policy.
On the geopolitical front, Iranian media reported on March 18 that Hamas issued a statement mourning the passing of Iran's Supreme National Security Council Secretary Ali Larijani, emphasizing its solidarity with Iran. The statement expressed condolences for all victims of US and Israeli military strikes, describing their "continued aggression" as a "criminal act" threatening security and stability across the Middle East, for which they must bear responsibility for the dangerous consequences.
According to a US Naval Institute news report on March 17, the USS Gerald R. Ford aircraft carrier, involved in US and Israeli operations against Iran, is preparing to leave the Red Sea for a US naval base in Greece for repairs following a recent fire. The duration of the stay has not been disclosed. The US military stated previously that the fire did not affect the carrier's propulsion systems and that the vessel remains combat-ready.
The Financial Times reported on March 17, citing International Maritime Organization Secretary-General Arsenio Dominguez, that naval escorts cannot "100% guarantee" the safety of vessel transit through the Strait of Hormuz, and risks remain. Military assistance is "neither a long-term nor a sustainable solution." Dominguez also expressed concern about supply issues for crews stranded in the Gulf region. The IMO is scheduled to hold a special council meeting at its London headquarters on March 18-19 to discuss responses to the impacts on regional shipping, particularly in and around the Strait of Hormuz.
Separately, on March 17, UN Deputy Spokesperson Farhan Haq, citing a warning from the World Food Programme, stated that the escalating situation in the Middle East will exacerbate global hunger. According to the WFP's latest analysis, if the conflict does not end by June this year and international oil prices remain above $100 per barrel, a significant number of people will face a severe food crisis.
Haq specifically emphasized the strategic importance of the Strait of Hormuz, noting that the key to restoring its safe operation lies in ending the conflict. Haq mentioned that UN Secretary-General António Guterres will travel to Brussels for emergency consultations with European officials regarding navigation through the Strait of Hormuz and subsequent safeguarding measures.