Iran War Disrupts Global Oil Markets Amid Rising Natural Gas Challenges

The war in Iran has had a significant impact on the global oil market. When hostilities began in February, oil prices soared as the US and Israel bombed Iranian targets.

However, once military activity slowed and diplomatic negotiations started, oil prices began falling in anticipation of the Strait of Hormuz reopening.

The International Energy Agency (IEA) organized a massive drawdown of global strategic oil reserves to ease the fear of an oil shortage.

The global natural gas industry has faced multiple challenges this year due to heat domes, Canadian wildfires, and the Iranian war. The US has seen strong gas production, enabling it to rebuild storage on par with 2025 levels while supplying more LNG to the global market.