economy
March 2, 2026
How escalating Iran conflict is driving up oil and gas prices
A near-halt to shipping in strait of Hormuz and attacks on Middle East refineries are threatening supplies and stoking inflation
TL;DR
- Iran's counterstrikes have led to a near-standstill in shipping traffic through the Strait of Hormuz, a critical chokepoint for global oil supplies.
- Attacks on oil facilities, including Saudi Aramco's Ras Tanura refinery, and LNG production in Qatar have disrupted energy supplies and driven up prices.
- The conflict has caused oil prices to jump over 10% and European gas prices to reach their highest levels since the 2022 Russian invasion of Ukraine.
- The rising energy costs pose an inflationary risk to Western economies, potentially impacting upcoming elections and government economic statements.
- A prolonged conflict could lead to further price increases, with predictions of Brent crude reaching $100 per barrel.
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