On February 28, 2026, the world awoke to a dramatic escalation in Middle Eastern tensions as Israel launched a series of airstrikes on Iran’s mainland, triggering immediate and far-reaching consequences across global financial markets, energy prices, and political landscapes. The strikes, swiftly followed by an official announcement from U.S. President Donald Trump declaring American military involvement, have set off alarm bells not just in the region but in financial capitals around the globe.
According to reports from Seoul Economic Daily and Infomax, the Israeli airstrikes targeted key military installations in Tehran, with the operation’s main focus on crippling Iran’s missile capabilities. President Trump, in a forceful 8-minute video message posted to his social media platform, made no attempt to downplay the severity of the intervention. He stated, “The U.S. military is conducting large-scale, sustained operations to stop this evil, radical dictatorship from threatening America and our core national security interests.” Trump’s message was unequivocal: the operation aimed to “destroy their missiles and completely devastate their missile industry.”
The rationale behind the attack, according to Trump, was Iran’s persistent nuclear ambitions and ongoing provocations. He accused the Iranian regime of having “rejected every opportunity to abandon its nuclear ambitions,” and warned that its “threatening activities have placed the American people, overseas bases, and allies worldwide in direct danger.” The U.S. president also delivered a stern warning to Iran’s military and police forces, urging them to lay down their arms, and appealed directly to the Iranian people to seize what he called a “moment of change.”
In the immediate aftermath, Israel’s Ministry of Defense declared a state of emergency and heightened its military alert, bracing for possible retaliation. The situation remained tense as Iranian officials threatened a forceful response, while the U.S. signaled readiness to deploy additional forces if necessary. The specter of a broader regional conflict loomed large, with analysts warning that the Middle East could be on the brink of a much wider war.
The impact of these events was felt almost instantly in the global oil markets. As Seoul Economic Daily reported, oil prices had already been climbing in the days leading up to the attack, closing at $73 per barrel on the London exchange on February 27—the highest level in seven months. The prospect of further escalation raised concerns about potential disruptions to oil supplies from a region that accounts for a significant share of global production. Experts from the U.S. Center for Strategic and International Studies (CSIS) warned that if the Strait of Hormuz—a critical chokepoint for global oil shipments—were to be blocked, prices could surge above $90 per barrel. A direct U.S. strike on Iran’s oil facilities, they cautioned, could send prices soaring past $100 per barrel.
Despite these fears, as of 8:30 PM Korea Standard Time on February 28, the passage of oil tankers through the Strait of Hormuz remained uninterrupted, according to Bloomberg. Nevertheless, the mere possibility of a supply disruption was enough to inject fresh volatility into energy markets. OPEC+, the coalition of oil-producing nations led by Saudi Arabia and Russia, indicated it was considering increasing output to stabilize prices, having kept supply steady for the past three months. Market participants braced for further turbulence as they awaited developments.
In South Korea, where energy imports are a lifeline for the economy, the government moved swiftly to assess the situation. Trade Minister Kim Jung-kwan convened an emergency meeting with officials from related ministries at 7 PM on February 28 to review the nation’s resource supply and the potential impact on domestic industries. While no immediate disruptions to oil or LNG shipments were reported, some tankers approaching the Strait of Hormuz were preparing alternative routes as a precaution. The Korea Trade Association estimated that a 10% rise in international oil prices would increase export prices by 2.09%, but would also reduce export volumes by 2.48%, leading to a net decrease in total exports of 0.39%. The association noted that the overall impact on South Korean exports would likely be limited in the short term, given the country’s relatively low export exposure to Israel (0.3%) and Iran (0.02%). However, it cautioned that a prolonged conflict and weakened global demand could have more significant medium-term effects.
The financial fallout extended well beyond the oil market. As Infomax and ZDNet Korea documented, the cryptocurrency sector was particularly hard hit. Bitcoin, the world’s leading digital asset, plummeted more than 2% to around $64,200 per coin in the hours following the strikes, at one point tumbling over 3% to $63,198 before staging a modest recovery. Other major cryptocurrencies such as Ethereum, Ripple, and Solana were not spared, each shedding close to 10% in value as panicked investors rushed to exit riskier assets. Indicators of market sentiment reflected what analysts described as “extreme fear,” underscoring just how sensitive the sector remains to geopolitical shocks.
This sharp downturn in digital assets was mirrored by a broader flight to safety in global markets. Gold and silver—long considered havens in times of turmoil—saw increased demand as investors sought refuge from mounting uncertainty. The U.S. dollar also benefited from its safe-haven status, with funds flowing out of emerging market currencies and riskier investments. Experts attributed these moves to a classic response to war and instability: when the world gets shaky, money heads for the safest hills it can find.
While the immediate market response was dramatic, some analysts urged caution against overreacting. The Korea Trade Association, for instance, pointed out that the impact of geopolitical risk on oil prices has diminished somewhat in recent years, as the world has adapted to repeated shocks from events like the ongoing Russia-Ukraine war and recurring Middle Eastern conflicts. Still, the potential for a significant and sustained disruption cannot be dismissed, especially if the conflict expands or if vital shipping lanes are compromised.
For now, the world watches anxiously as leaders in Washington, Jerusalem, and Tehran weigh their next moves. President Trump’s public call for regime change in Iran, coupled with Israel’s bold military action, marks a new and unpredictable phase in the region’s long history of strife. With financial markets on edge and energy supplies potentially at risk, the stakes are as high as they have been in years. As one market analyst put it, “When missiles fly in the Middle East, the whole world feels the shockwaves.”
As the dust settles—however briefly—governments, investors, and ordinary citizens alike are left to ponder what comes next in this unfolding drama, knowing full well that the consequences of today’s actions could reverberate for years to come.