Hormuz Conflict Drives Up Global Energy Costs

The ongoing war between Iran and other countries has led to disruptions in oil supplies through the Strait of Hormuz, causing energy costs to rise worldwide.

The Brent crude price surged by about 2.8% on September 14th to over $107 per barrel due to attacks on shipping and the shutdown of Saudi Arabia's East-West pipeline following a drone attack.

Before the war, the Strait of Hormuz carried roughly one-fifth of global oil consumption and a similar share of international liquefied natural gas trade, according to the U.S. Energy Information Administration.