Your Money with Michelle Martin (MONEY FM 89.3)
Market View: How High Can Oil Go? Winners and Possible Losers Amongst Defense Stocks and SG Agri Counters
Your Money with Michelle Martin (MONEY FM 89.3)
•March 9, 2026•17 min
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Your Money with Michelle Martin (MONEY FM 89.3)•Mar 9, 2026
Why It Matters
Rising oil prices not only threaten global inflation and central‑bank policy but also reshape sector performance, offering opportunities in defense and upstream commodities while hurting downstream consumers. Understanding these dynamics helps investors navigate risk and identify winners and losers in a geopolitically volatile environment.
Key Takeaways
- •Oil exceeds $100 barrel amid Iran‑Israel conflict.
- •Singapore palm‑oil growers face margin squeeze from higher crude.
- •Palantir rises 15% as defense spending expectations grow.
- •Berkshire Hathaway under Greg Abel begins active cash deployment.
- •ST Engineering defense shares jump nearly 10% on war outlook.
Pulse Analysis
Oil prices have surged past the $100‑a‑barrel mark as Iran’s new supreme leader takes charge and regional hostilities intensify. Brent and WTI now trade above $107 and $106 respectively, reflecting fears over the Hormuz Strait and disrupted supply lines. The spike fuels inflation worries across energy‑importing Asian economies and pressures U.S. equities, where higher input costs clash with softer labor data, creating a volatile backdrop for rate‑sensitive investors.
In the equity arena, the Middle East flare‑up creates a split narrative. Singapore‑listed palm‑oil producers with upstream focus, such as First Resources and Bumitama, stand to benefit from rising crude that boosts biodiesel demand. Conversely, integrated players like Wilmar International and Golden Agri face tighter margins as raw‑material costs climb. Defense‑oriented stocks are gaining traction; Palantir’s 15% weekly rise stems from heightened government contract prospects, while ST Engineering’s near‑10% jump underscores market optimism for defense spend amid geopolitical risk. These dynamics illustrate how oil’s trajectory reverberates through both commodity and security sectors.
Investors must balance these forces while watching broader macro cues. Berkshire Hathaway’s new CEO Greg Abel is already deploying the conglomerate’s cash, signaling potential shifts in capital allocation without abandoning Buffett’s valuation discipline. Upcoming U.S. CPI and labor reports will test whether inflationary pressure from oil or a cooling economy dominates market sentiment. Meanwhile, Singapore’s tourism‑linked CDL Hospitality Trust eyes recovery as renovations ease, and analysts monitor earnings from retailers like Kohl’s and tech firms such as Oracle. Navigating this environment calls for selective exposure to beneficiaries of higher oil—defense and upstream agribusiness—while hedging against sectors vulnerable to cost‑inflation spillovers.
Episode Description
War risk in the Middle East is back on traders’ screens - and the ripple effects are already shaking oil, defense stocks, airlines and global markets.
Escalating tensions in the Middle East - including Iran’s unprecedented leadership succession - are sending shockwaves through global markets.
Oil has surged above US$100 a barrel for the first time in years, reigniting inflation fears and putting pressure on equities.
Defense companies are rallying while travel and aviation stocks stumble amid rising geopolitical uncertainty.
Meanwhile investors are watching Greg Abel’s first major moves as CEO of Berkshire Hathaway for clues on the next phase of Warren Buffett’s empire.
Closer to home, the Straits Times Index slipped for the week as Singapore Airlines, SATS and Jardine Matheson came under pressure while ST Engineering surged on defence optimism.
In this episode of Market View, hosted by Michelle Martin we unpack how geopolitics is reshaping sector winners and losers.
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