Global energy markets are on edge as tensions in West Asia intensify, with Fatih Birol, head of the International Energy Agency, warning that the current crisis is “very severe” — surpassing even the combined impact of the oil shocks of the 1970s.
Speaking at the National Press Club of Australia, Birol identified the blockade of the Strait of Hormuz as the central threat to global energy stability. The narrow waterway, through which a significant portion of the world’s oil supply passes, has been effectively shut by Iran following the United States-Israel strikes on Iranian territory.
Amid soaring oil prices and mounting domestic pressure, former U.S. President Donald Trump issued a stark warning: Iran must fully reopen the Strait of Hormuz within 48 hours or face devastating attacks on its power infrastructure. Posting from his Florida residence, Trump threatened to “obliterate” Iran’s energy network.
Tehran responded swiftly, vowing retaliation against U.S. and Israeli energy and infrastructure targets if any such strike occurs — raising fears of a broader regional war with global consequences.
The conflict entered a more volatile phase as Iranian missiles struck communities in southern Israel, injuring dozens and causing widespread damage near key strategic installations. The attacks underscore a sharp escalation as the war enters its fourth week, with both sides expanding the scope of engagement.
The human cost continues to climb. Reports indicate over 1,500 deaths in Iran, more than 1,000 in Lebanon, alongside casualties in Israel and among U.S. military personnel. Millions have been displaced across the region, worsening an already dire humanitarian crisis.
Regional tensions have spilled into neighboring countries. Air defence systems in Kuwait and the United Arab Emirates were activated to intercept incoming missiles and drones, while air raid sirens echoed across Bahrain, signalling the widening footprint of the conflict.
Diplomatic channels remain active. Emmanuel Macron spoke with Saudi Crown Prince Mohammed bin Salman, expressing France’s solidarity with Saudi Arabia and condemning what Paris described as repeated Iranian attacks on the kingdom. France reiterated its support for measures to protect Saudi sovereignty and security.
The war has sent shockwaves through global oil markets. Benchmark crude prices have surged and remain highly volatile. West Texas Intermediate briefly spiked before settling around $97.86 per barrel, while Brent crude hovered above $111.
Prices have climbed dramatically since the conflict began, with Brent rising from roughly $70 per barrel to peaks near $120. The disruption of shipping routes and production facilities in the Middle East — particularly around the Strait of Hormuz — continues to fuel uncertainty.
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