Economics & Markets

The conflict now widely referred to as the Third Gulf War has caused the largest disruption on record in the global energy market. The main point of tension is the Strait of Hormuz, a key maritime route through which around 20% of global oil and liquefied natural gas (LNG) passes. With the strait effectively closed, a large share of the region’s energy production is blocked. Energy markets reflected this scenario: the price of oil hovered around 100 dollars per barrel in the final weeks of March, driven by supply disruptions, attacks on tankers and damage to critical energy infrastructure.