US-Iran War: How It Affects Your Finances in Singapore (2026)

TL;DR: One month into the US-Iran conflict, oil has surged past $116/barrel (up ~50% in March alone), the Strait of Hormuz is effectively shut, and the US is preparing for ground operations. Singapore is feeling it through surging energy costs, falling stock markets, and rising inflation expectations. Here are 5 things you can check right now.

This article was originally published on 16 March 2026 and has been updated on 30 March 2026 with the latest developments.

When I first wrote about this conflict in mid-March, crude oil had just crossed $106 a barrel. The US had struck Iran's Kharg Island, the Strait of Hormuz was being disrupted, and most of us were hoping it would blow over quickly.

It didn't.

One month in, here's where things stand.

What's happened since mid-March

Oil prices have exploded. Crude oil hit $116.56 on 30 March. That's a 50%+ jump in one month. To put that in perspective, this is the biggest monthly oil price surge on record, bigger than when Iraq invaded Kuwait in 1990.

The Strait of Hormuz is effectively closed. This is the chokepoint through which roughly 20% of the world's oil, gas, and petrochemical products flow. With it shut, global supply chains are under extreme pressure.

Yemen's Houthi militants have joined the conflict. On 28 March, the Iran-aligned Houthis fired missiles at Israel, marking a major escalation. They also have the capability to target ships in the Red Sea and Saudi oil infrastructure, essentially threatening the backup routes that were keeping some energy flowing.

The US is preparing for ground operations. The Pentagon has reportedly ordered thousands of troops to the region and is preparing for weeks of ground operations in Iran. Trump has also said the US could seize Kharg Island, Iran's main oil export hub.

Pakistan is stepping in as mediator. Pakistan announced it's preparing to host peace talks. Iran has also struck a deal with Pakistan to route some ships through the Hormuz strait. But analysts at Commonwealth Bank expect the conflict to run at least into June, with risk tilted towards an even longer timeline.

Asia markets are getting hit hard. Japan's Nikkei has dropped almost 14% in March. South Korea fell 4.2% just today. Singapore's STI is down too. S&P 500 and Nasdaq futures are both in the red.

But stock market numbers don't tell the full story. Singapore's STI held up better than most, yes. Where we really feel the pain is in everyday costs.

Why Singapore feels this in your wallet, not just the markets

Singapore imports almost everything. We have no oil, no natural gas, no agricultural land to speak of. So when global supply chains get disrupted, we feel it fast.

Here's the chain reaction:

Oil prices spike → petrol prices go up, electricity bills go up, transport costs go up → businesses pass costs to consumers → your groceries, your Grab rides, your hawker food, all gradually more expensive.

With oil past $116 and JPMorgan warning it could hit $150 if the Strait stays closed another month, the inflation impact for Singapore could be significant.

Interest rate expectations have flipped. A month ago, markets were pricing in 50 basis points of rate cuts by the Fed in 2026. Now? Markets are pricing in rate hikes instead. That affects mortgage rates, savings rates, and bond yields here in Singapore too.

Travel insurance gaps exposed. Many Singaporeans with trips booked through Middle East stopover hubs (Dubai, Doha, Abu Dhabi) have found their travel insurance doesn't cover war-related disruptions. Most standard policies exclude acts of war. Income Insurance has broken ranks and is now covering affected trips, but it's the exception, not the norm.

What this means for your investments

Stock markets are volatile, and that's normal during conflict. If your portfolio is red, you're not alone. The key is whether your portfolio was built to handle this kind of turbulence.

Energy stocks are outperforming. Companies in the oil and energy sector are benefiting from surging prices. If you're diversified, you likely have some exposure here already.

Safe haven assets are climbing. Gold, government bonds, and the US dollar are all up. The US has a relative advantage here as a net energy exporter, which is why the dollar keeps strengthening against most Asian currencies.

The inflation picture has changed. EU inflation is expected to jump from 1.9% to 2.7% in March. Similar pressures are building across Asia. Higher-for-longer interest rates are back on the table.

5 things you can do right now

You don't need to make dramatic changes. But a quick check-in with your finances during uncertain times is always smart.

1. Check your emergency fund

The general guideline is 3-6 months of expenses. During periods of economic uncertainty and rising costs, leaning closer to 6 months gives you more breathing room. With everyday expenses likely to creep up from higher oil prices, topping up your emergency fund now is a good move.

2. Review your portfolio diversification

Are you too concentrated in one region or sector? A well-diversified portfolio across different geographies, asset classes, and sectors helps cushion the impact when one area gets hit. If you're heavily into US tech stocks or mostly in S&P 500 index funds, you're more exposed than you might think. The S&P 500 is down, Nasdaq futures are falling, and tech-heavy portfolios are taking a hit as inflation fears rise and rate cut expectations disappear. Same goes if most of your investments are in Asia-heavy positions.

3. Don't panic sell

This is the hardest one. When headlines are scary and your portfolio is red, every instinct says "get out." But historically, selling during a crisis and buying back later almost always underperforms just staying invested. Time in the market beats timing the market, and that's especially true during volatile periods.

4. Understand your insurance coverage

Rising costs affect healthcare too. Medical inflation in Singapore has been running at 8-10% annually even before this. If you haven't reviewed your health insurance in a while, it's worth checking if your coverage still matches your needs.

Also: if you have upcoming travel through Middle East hubs, check whether your travel insurance covers war-related disruptions. Most standard policies don't, so it's worth knowing before you fly.

5. Think about inflation hedges

When the cost of living rises faster than your savings grow, your purchasing power quietly erodes. Assets like gold, inflation-linked bonds, and real assets (property, REITs) can help protect against this. Even a small allocation, say 5-15% of your portfolio, can make a meaningful difference over time. Gold in particular has been performing well through this crisis.

The bigger picture

One month into this conflict, the situation is more serious than many initially expected. The Houthis joining in, the threat of US ground operations, and oil heading towards record levels, these are not small developments.

But geopolitical events like this, while unsettling, are also not unprecedented. The 1970s oil crisis, the Gulf War, the 2008 financial crisis, COVID. Each time, markets recovered. Each time, the people who stayed calm and stuck to their plan came out ahead.

The key isn't predicting what happens next. It's making sure your financial foundation is solid enough to weather whatever comes.

Have questions about how this affects your financial plan?

I'm happy to chat. Whether it's reviewing your portfolio, checking your insurance coverage, or just talking through what this all means for your situation, feel free to reach out.

📩 Book a free consultation →

Sources: Straits Times, Al Jazeera, CNA, Trading Economics, JPMorgan Research, Commonwealth Bank of Australia, March 2026