The entire world watches as the worst energy crisis since the dawn of mankind unfolds before our very eyes. The United States of America and Israel conducted joint air strikes against Iran on 28 February 2026, as part of their operation “Epic Fury.” In response, Iran retaliated by attacking American military bases, Gulf countries and most importantly, closing off the Strait of Hormuz which is a crucial strait from where about 20% of the world’s oil passes each day.
In just one decision, the world was forever changed. READ MORE
What Is the Strait of Hormuz and Why Does It Matter?
The Strait of Hormuz spans 33.8 kilometres and connects Iran and Oman. More than 20 million barrels of oil transit through it daily, including oil used for household, industrial and automotive and aviation purposes in Asia and Europe.
Following the decision by Iran to block this strait at the beginning of March 2026, more than 150 vessels sought shelter outside of it to protect themselves from Iranian attacks. In turn, the IEA deemed this event to be “the biggest ever energy security challenge faced by the world.”
How Much Have Oil Prices Risen?
The numbers tell a shocking story. Before the war started, oil prices sat at relatively stable levels. Then:
- By March 5, Brent crude jumped to $83 per barrel.
- By March 8, it crossed $100 per barrel for the first time in four years.
- By April 6, the US benchmark West Texas Intermediate (WTI) climbed to $115.48 per barrel.
- Analysts at Macquarie Group warn that if the war extends into summer, oil could reach $200 per barrel.
TD Securities estimates the world will lose nearly 1 billion barrels of oil and refined products by the end of April alone.
How Is This Affecting Everyday People Around the World?
United States
American drivers felt the pain fast. Gas prices crossed $4 per gallon on March 31 — the first time since 2022. Diesel prices hit $5.62 per gallon, up nearly 50% since the war began. Companies like Amazon and JetBlue added surcharges to cover rising fuel costs. Small business owners say they cannot absorb the higher expenses and feel trapped between rising costs and reluctant customers.
Asia
Asia relies most heavily on Middle Eastern oil. Japan sources 94% of its crude from the Middle East. The Philippines declared a national energy emergency in March after its oil supply — 98% of which comes from the Middle East — faced severe disruption. Thailand’s diesel prices jumped from 29.94 THB to 50.54 THB per liter in just weeks. Countries like Myanmar, Sri Lanka, and Vietnam introduced fuel rationing, shorter work weeks, and emergency subsidies.
Europe
Europe faces an LNG (liquefied natural gas) shortage after Iran struck Qatar’s Ras Laffan LNG complex in mid-March — damage that experts say will take 3 to 5 years to repair fully. LNG prices in Asia surged over 140% after that strike. European diesel shortages loom as the crisis spreads westward through supply chains.
Pakistan
Pakistan increased petrol prices by 42.7% and diesel by 54.9% in direct response to the global energy spike. These increases hit ordinary Pakistanis hard, raising transport costs, food prices and household expenses across the country.
What Is Trump Doing About It?
President Donald Trump gave Iran a Tuesday deadline to reopen the Strait of Hormuz, threatening to destroy Iran’s power plants and bridges if it refuses. He told world allies to “go to the Strait and just take it.” The US, Iran and regional mediators are reportedly discussing a potential 45-day ceasefire, but no deal exists yet.
OPEC+ agreed to increase production by 206,000 barrels per day in May, but the oil cannot reach global markets while the Strait remains closed.
Could Prices Hit $200 Per Barrel?
Analysts from Macquarie Group put a 40% probability on oil reaching $200 per barrel if the war continues into summer. At that level, the damage to the global economy would roughly double — threatening stagflation, recession and enormous pain for developing nations. For now, the world watches the clock. Oil executives warn that the Strait of Hormuz must reopen by mid-April or the supply crisis will become significantly worse.
Final Thoughts
The Iran War is not just a military conflict — it is an economic earthquake shaking every corner of the world. From the petrol pump in Lahore to the gas station in Los Angeles, ordinary people pay the price every day. The longer the Strait of Hormuz stays closed, the deeper and more lasting the damage will be.
The world needs a resolution — and it needs one fast.