Global: The global energy market was jolted into high alert as a U.S.-Israeli military campaign against Iran triggered the effective closure of the Strait of Hormuz for the fourth consecutive day, halting the flow of a critical artery that accounts for approximately 20% of the world's oil and liquefied natural gas (LNG) supply. The benchmark Brent crude settled at USD 81.40 per barrel on March 3, 2026 — up 4.7% in a single session and registering its highest settlement price since January 2025. European natural gas prices surged as much as 40%, compounding an equivalent gain recorded just the previous day.

The fallout was rapid and far-reaching. Iran launched targeted drone and missile strikes against regional energy infrastructure, disabling a fuel tank at Oman's Duqm commercial port and triggering fires at the UAE's Fujairah oil hub, one of the most strategically significant bunkering ports in the world. Qatar, supplier of roughly 20% of global LNG exports, shut down its liquefied natural gas facilities, while Saudi Aramco suspended operations at its largest domestic refinery following a drone strike. Iraq, OPEC's second-largest producer, reported forced production cuts of over 1.1 million barrels per day from the Rumaila and West Qurna 2 fields, with warnings of further reductions exceeding 3 million bpd if Hormuz disruptions persisted.

Crude tanker transits through the Strait plummeted from a daily average of 24 vessels to just four, with hundreds of tankers carrying oil and LNG stranded near regional hubs, unable to reach customers in Asia, Europe, and beyond. In the United States, retail gasoline prices surpassed USD 3 per gallon for the first time since November 2025, recording the single largest overnight price jump of 11 cents in more than three years an acutely sensitive political pressure point ahead of U.S. midterm elections. President Donald Trump announced that the U.S. Navy stood ready to escort tankers through the Strait of Hormuz if required, while instructing the U.S. International Development Finance Corporation to issue political risk insurance for Gulf maritime trade.

According to U.S. Treasury Secretary Scott Bessent, alongside Energy Secretary Wright, the administration was actively coordinating measures to mitigate the oil price spike and stabilize energy markets through both diplomatic and logistical channels. President Trump, directly addressing the crisis, stated: "The U.S. Navy could begin escorting oil tankers through the Strait of Hormuz if necessary — we are taking every step available to contain energy prices and protect American consumers." Iraq's Oil Ministry officials warned: "If tankers cannot move freely to our loading points, we may be forced to cut production by more than 3 million barrels per day within days." Saudi Aramco, for its part, moved swiftly to reroute crude supplies to its western Red Sea port of Yanbu via the east-west pipeline, though analysts cautioned that limited capacity and the risk of further strikes constrained this option severely.

According to TechSci Research, the global crude oil market remains inherently vulnerable to geopolitical disruptions in the Middle East, a region that accounts for nearly one-third of global oil production and a fifth of total natural gas supply. The firm's analysis of global energy security infrastructure highlights that any sustained closure of the Strait of Hormuz for more than ten days historically triggers a supply shock capable of elevating Brent crude prices by 15–25%, with cascading inflationary consequences across food, fertilizers, and industrial commodities. TechSci Research's outlook on the global LNG market notes that Qatar's production shutdowns exacerbate an already tight European supply environment, forcing accelerated procurement of U.S. LNG and driving up charter rates to record levels. The energy-intensive emerging economies particularly India and Southeast Asia will face disproportionate economic impact given their structural dependence on Middle Eastern crude, reinforcing the strategic case for supply chain diversification and acceleration of domestic renewable capacity investment across the Asia-Pacific region.

According to a report published by TechSci Research, LNG Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By LNG Infrastructure (LNG Liquefaction Plants, LNG Regasification Facilities and LNG Shipping), By End-User (Residential, Commercial and Industrial), By Region and Competition, 2020-2030F, The Global LNG Market, valued at USD 133.10 Billion in 2024, is projected to experience a CAGR of 7.00% to reach USD 199.75 Billion by 2030. Liquefied Natural Gas (LNG) refers to natural gas cooled to approximately -162°C, converting it into a liquid state for efficient storage and long-distance transport, thereby reducing its volume significantly. The global LNG market's expansion is fundamentally supported by escalating global energy demand, particularly from emerging economies, the increasing imperative for cleaner energy sources to mitigate carbon emissions, and the strategic objective of enhancing national energy security. According to the International Gas Union, global LNG trade grew by 2.4% in 2024, reaching 411.24 million tonnes.