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Stocks sink, oil rises on worsening conflict in ME

Gulf Today

|

March 20, 2026

Stocks slid and oil prices rose sharply on Thursday after major escalation in the US and Israel's war with Iran rattled investors, while the yen wobbled near the crucial 160 per dollar level as Japan's central bank left interest rates unchanged.

As widely expected, the Bank of Japan left unchanged its short-term policy rate at 0.75% but joined the US Federal Reserve and Bank of Canada in striking a cautious tone about the impact of rising oil costs from the conflict on inflation.

The yen was last at 159.61 a dollar as traders look for any hint of intervention, with Japanese finance minister Satsuki Katayama earlier saying authorities were prepared to “take necessary action at any time against market volatility”.

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