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Here’s a look at tell-tale signs that reveal the global economic fallout from this war: Since the US-Israeli strikes on Iran began on February 28, Tehran has launched a wave of ballistic missiles targeting Israel, US military bases, oil depots and other infrastructure across the Gulf region. Iranian attacks on several vessels passing through the Strait of Hormuz have also dramatically reduced traffic in the narrow channel, through which about 20 percent of global oil and gas supplies transit. On Thursday, Iran also attacked fuel tankers in Iraqi waters.
All of this has combined to send oil prices soaring. As of Monday morning, Brent crude, the industry benchmark, was priced at $106 per barrel, up more than 40 percent from $72 per barrel on February 27. According to Muyu Xu, a senior crude oil analyst at Kpler, liquified natural gas (LNG) prices have risen even more sharply – by almost 60 percent – since the start of the war.
On March 2, QatarEnergy suspended its LNG production after an Iranian drone attack, straining the global LNG market. Qatar supplies 20 percent of the world’s LNG. Prices of refined products from petrol and gas oil to jet kerosene and fuel oil have also seen significant increases, and that trend is expected to continue if energy flows through the Strait of Hormuz remain largely shut, Muyu added.
“As crude oil and refined products from the Middle East Gulf are unable to reach buyers, countries, particularly in Asia, are scrambling to secure alternative supplies at higher prices and adopt emergency measures to manage inventories and demand,” she told Al Jazeera. About 84 percent of the crude oil and 83 percent of the LNG that passed through the strait in 2024 was bound for Asia, according to data from the US Energy Information Administration.
