Global Energy Markets Suffer as Iran Conflict Enters Second Week

A war between Iran and other countries has caused significant disruptions to global energy markets, leading to higher fuel prices for consumers worldwide. The conflict has suspended around a fifth of global crude and natural gas supply, with Iranian forces targeting ships in the Strait of Hormuz and attacking energy infrastructure across the region.

Global oil prices have surged 24% this week to over $90 a barrel, driving up fuel prices for consumers. The market is shifting from pricing pure geopolitical risk to grappling with tangible operational disruption, as refinery shutdowns and export constraints begin to impair crude processing and regional supply flows.

The Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman, has been a critical chokepoint in global oil trade. The region's giant oil producers, Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait, have had to suspend shipments of as much as 140 million barrels of oil, equal to about 1.4 days of global demand.