Global oil, gas prices surge as Iran crisis deepens with so sign of easing
PTC News Desk: Global oil and gas prices rose sharply on Tuesday as the US-Israeli war with Iran disrupted energy exports from the Middle East. Iran attacked ships and energy facilities, closed navigation routes in the Gulf, and forced some countries like Qatar and Iraq to stop production.
Brent crude oil prices increased by $3.66, or 4.7%, to $81.40 per barrel — the highest level since January 2025. European gas prices jumped by as much as 40% before falling slightly, adding to another 40% rise the previous day.
Experts warn that if the conflict continues, it could cause higher inflation and slow economic recovery in Europe and Asia. The Middle East produces nearly one-third of the world’s oil and almost one-fifth of its natural gas, so any long disruption could have serious global effects. Rising fuel prices could also create political problems for US President Donald Trump and his Republican Party ahead of the November midterm elections.
President Trump said the US Navy may escort oil tankers through the Strait of Hormuz if needed. This narrow sea route is vital for global oil shipments. He also ordered financial support and insurance guarantees for maritime trade in the Gulf to protect shipping. These are some of the strongest steps taken so far to control rising energy prices during the conflict.
The Strait of Hormuz has effectively remained closed for four days after Iran attacked five ships. The strait normally carries about 20% of the world’s oil and LNG supply.
According to vessel-tracking data, only four oil tankers passed through the strait on March 1, compared to an average of 24 per day since January. Three of those ships were flying the Iranian flag.
Most of Qatar’s LNG goes to Asia, but some is also supplied to Europe. Europe, which depends heavily on imported energy, is already facing low reserves after a cold winter. Since cutting off Russian gas after the 2022 Ukraine war, Europe has relied more on US gas supplies.
Shipping costs have reached record highs as tensions grow and Iran targets vessels in the region. Hundreds of oil and LNG tankers are now stuck near major ports like Fujairah in the United Arab Emirates, unable to deliver fuel to customers in Asia, Europe, and other regions.
- With inputs from agencies
