Global Markets in Crisis — Oil Hits $85, Dow Crashes 785 Points, Trump Tariffs Struck Down by Supreme Court

Sh. Bidyut Bala | PrimeWorld Times

March 6, 2026

Friday, March 6, 2026 will be remembered as one of the darkest days for global financial markets in recent memory. From Wall Street to Dalal Street, from London to Tokyo, investors watched in horror as oil prices exploded, stock markets crashed, and a landmark US Supreme Court ruling sent shockwaves through the entire global trading system — all in a single devastating day.

Oil Prices Explode — Brent Hits $85 Per Barrel

The Iran war has done what analysts feared most — triggered a full-blown global oil crisis. Brent crude oil smashed through the $85 per barrel barrier on Thursday, posting its biggest weekly gain since 2022. US West Texas Intermediate crude surged more than 8% in a single trading session, briefly hitting $82 per barrel. 

The trigger was simple and terrifying: the Strait of Hormuz — the narrow waterway through which approximately 20% of the world's oil flows every single day — remains closed due to the ongoing US-Israel-Iran conflict. For every family filling up their car's petrol tank from Mumbai to Manchester, from Toronto to Tokyo, the pain at the pump is about to get significantly worse.

Wall Street Crashes — Dow Loses 785 Points

The carnage on Wall Street on Thursday was brutal and swift. The Dow Jones Industrial Average shed a staggering 785 points, falling 1.61% to close at 47,955 — completely erasing all of its 2026 gains in a single session. 

The S&P 500 fell 0.57% to 6,831, while the Nasdaq slipped 0.26% to 22,749, saved only by a late-session relief rally in technology stocks. The 10-year US Treasury yield surged to 4.14% — its highest level in a month — as traders dramatically slashed their expectations for interest rate cuts this year to just one 25 basis point move. 

Across Europe, the picture was equally grim. The Stoxx 600 fell 1.4%, the DAX dropped 1.7%, and Spain's IBEX lost 1.4% after Trump threatened to cut off all trade with Madrid over its refusal to host US strike operations. 

Trump Tariffs Struck Down by Supreme Court

In a stunning legal defeat for the White House, the US Supreme Court struck down most of President Donald Trump's Liberation Day tariffs on Thursday. The court ruled that the administration had improperly relied on emergency economic powers to justify imposing the duties. The ruling is expected to put the US government on the hook for an estimated $175 billion in potential tariff refunds. 

Two dozen US states had filed lawsuits challenging the 15% tariffs, arguing that Trump was dramatically overstepping his constitutional authority. The ruling immediately sent global currency and bond markets into a spin, adding yet another layer of uncertainty to an already chaotic global economic environment.

Iraq Cuts Oil Production by 1.5 Million Barrels

Iraq has cut its oil production by nearly 1.5 million barrels a day as it ran out of storage and was unable to load tankers. 

This dramatic production cut comes at the worst possible moment for global oil markets, further tightening an already critically stressed global energy supply. 

Iraq is one of the world's largest oil exporters, and its production cut is expected to push oil prices even higher in the coming days and weeks.

BYD Sales Plunge — China's EV Giant Stumbles

In a significant development for the global electric vehicle industry, Chinese EV giant BYD reported a sharp plunge in sales for the first two months of 2026. 

The world's largest EV manufacturer is losing ground to competitors at a faster pace than analysts had anticipated. The sales decline comes as BYD faces increasing competition from both Chinese domestic rivals and international manufacturers who are rapidly expanding their own EV lineups. The news sent BYD's stock sharply lower on Asian markets on Friday.

Gold Falls — But JP Morgan Predicts $6,300 by Year End

In a counterintuitive move, gold prices fell roughly 1% to around $5,100 on Thursday as a stronger US dollar offset safe-haven demand. However, JPMorgan Chase has maintained its bold forecast that gold prices could reach $6,300 per ounce by the end of 2026, citing the ongoing geopolitical crisis and long-term inflation risks as the primary drivers. 

For investors worldwide, gold remains one of the most watched assets in what is shaping up to be an extraordinarily volatile year for global markets.

The Road Ahead

The global economy is now navigating what economists are calling a perfect storm — a Middle East war, an oil crisis, a US legal battle over tariffs, and crashing stock markets, all happening simultaneously. 

The coming weeks will be critical. If the Iran war ends quickly and the Strait of Hormuz reopens, markets could recover sharply. But if the conflict drags on for the four to five weeks that President Trump has suggested, the economic damage could be severe and long-lasting for families, businesses, and governments all around the world.

Tags: Global Markets Crisis, Oil Price $85, Dow Crash, Trump Tariffs Supreme Court, Iraq Oil Cut, BYD Sales, Gold Price, Business News, Breaking News