US Military Deploys Marine Expeditionary Unit to the Middle East Amid Rising Tensions

The US military deployed a Marine Expeditionary Unit to the Middle East on March 13, 2026, in response to intensifying regional hostilities. The deployment is part of a broader effort to stabilize the area and protect global trade routes. The move comes amid ongoing conflict that has led to the closure of the Strait of Hormuz, a critical oil transport corridor.

Oil prices have surged to over $100 per barrel as a result of the Strait's closure, which has stranded nearly 14.8 million barrels of daily oil production. This has caused global stock markets to decline, with US indexes falling over 1.5% on the same day. Analysts attribute this volatility to the strategic importance of the region's oil infrastructure.

ASEAN foreign and economic ministers have called for an immediate cessation of hostilities, citing the economic repercussions of surging oil prices and disrupted trade. They emphasized the need to maintain open energy supply chains and implement regional strategies to mitigate the crisis's economic impact on Southeast Asia.

Why Did This Happen?

The closure of the Strait of Hormuz, a vital transit point for 20% of global oil consumption, was declared by Iran's new supreme leader, Mojtaba Khamenei, who warned it would remain closed as a 'tool of pressure.' The decision has significantly impacted global energy markets and heightened geopolitical tensions.

The conflict has already led to economic modeling indicating potential global GDP losses of up to $2.2 trillion, depending on the duration of hostilities. Countries heavily reliant on oil are most at risk, while those with diversified energy sources are less vulnerable.

How Did Markets React?

Oil prices have fluctuated heavily this week, with Brent crude reaching nearly $120 per barrel before settling at $100. The International Energy Agency has attempted to stabilize prices by releasing 400 million barrels of oil, but this has not yet succeeded in curbing the upward trend.

The impact is being keenly felt in Southeast Asia. Indonesia's government is preparing for a potential fiscal deficit exceeding the mandated 3% of GDP threshold. To address this, senior economic officials are considering additional taxes on commodities like palm oil, nickel, and copper.

European markets are also under pressure. CLS Holdings PLC, a major UK property firm, saw its stock price drop 12% after warning that the conflict could negatively affect European economies and property markets. The company's net rental income declined 11% in 2025, reflecting the broader economic uncertainty.

What Are Analysts Watching Next?

Analysts remain focused on the duration of the conflict and the potential for a resolution that would reopen the Strait of Hormuz. Prolonged tensions are expected to push oil prices higher, with global inflation potentially increasing by up to 2.5 percentage points.

Qatar's energy sector, by contrast, is seen as relatively insulated due to strategic planning. The country's North Field expansion is expected to increase LNG output, and long-term supply contracts with global partners provide demand stability. These factors, combined with its low production costs and carbon-capture initiatives, enhance Qatar's resilience to market volatility.

The US military has also faced significant costs, with the first week of the conflict costing an estimated $11.3 billion. Congressional officials are considering a supplemental funding package to cover ongoing expenses.

Investors and policymakers are now watching for any indication of de-escalation, emergency fiscal interventions, or further geopolitical developments that could influence the trajectory of global markets and energy prices.