Iran War Crisis Averted: How Emergency Measures Saved the Day

When the Iran war first began, experts predicted that the closure of the Strait of Hormuz would lead to the 'largest energy crisis in history'. The strait is a narrow waterway between the Persian Gulf and the Gulf of Oman through which almost 20% of the world's traded oil passes. Before the conflict started, it was estimated that Iran's blockade of the strait would erase 15 million barrels per day from circulation overnight.

However, despite initial dire predictions, little of this has come to pass. Oil prices have increased around the world, but rationing and recession have not materialized as expected. Instead, emergency measures have helped avoid the predicted crises.

Many countries had stockpiles of oil saved up for an emergency, and in March, the International Energy Agency coordinated a historic release of oil from those reserves. This added over 400 million barrels to the market, equivalent to about 20 days' worth of supply from Hormuz.

Countries that were most reliant on fossil fuel imports from the Middle East took conservation measures to reduce their demand. Over 100 countries implemented some form of conservation measure, ranging from limits on elevator usage to outright restrictions on when people could drive.