Global Energy Costs Soar as Iran Crisis Disrupts Shipping, Oil Production

Global oil and gas prices have surged as the conflict between Iran and Israel disrupts energy exports from the Middle East. The US-Israeli war on Iran has halted navigation in the Gulf, forcing production stoppages in Qatar, Saudi Arabia, and Iraq.

The closure of the Strait of Hormuz for a fourth day has choked off key oil and gas supplies, causing a 15% rise in oil prices since Friday. Brent Crude has gained 6% to above $82 per barrel, its highest since July 2024.

European gas prices have soared 40%, adding to a 40% surge on Monday. Sugar, fertilizer, and soybean prices have also risen.

The conflict risks triggering renewed inflation, potentially choking off economic recovery in Europe and Asia if the war is prolonged.