When the conflict between Iran and Israel flared up on February 28, 2026, with heavy involvement of US military underOperation Epic Fury, the Middle-East, let alone the world, was not ready for the spillover. The ongoing military contention has sparked fresh concerns about the stability of global energy markets, particularly if the conflict disrupts the Strait of Hormuz, one of the world’s most important oil shipping routes.
The narrow waterway connects the Persian Gulf to global markets and carries roughly 20 percent of the world’s oil and liquefied natural gas supplies. Recent Israeli strikes on Iranian oil storage facilities near Tehran have intensified fears that the conflict could expand into an economic crisis affecting energy markets worldwide.
According to a report by Axios, the attacks targeted several Iranian oil depots and a refinery around the capital and triggered massive fires that killed at least four people. The report said Israeli officials informed Washington before the operation but that the scope of the strikes went beyond what US officials had expected. An American official told Axios that the US military was surprised by how “wide-ranging” the strikes were, adding that “we don’t think it was a good idea.”
The escalation quickly rippled through global energy markets. Oil prices surged sharply following the strikes and briefly crossed the $100-per-barrel mark for the first time in nearly four years. Energy markets have been particularly sensitive to developments around the Strait of Hormuz because a disruption in the corridor could significantly reduce global oil supply.
Speaking to PBS News, energy analyst Daniel Yergin explained that fears surrounding the shipping route were driving market volatility. “What drove the prices up, of course, was the shutting of the Strait of Hormuz, through which pass 20 percent of world oil and 20 percent of LNG,” Yergin said in an interview cited by PBS News.
Prices later eased after comments suggesting the war might not escalate further, but they remain significantly higher than before the conflict began. Before the military buildup in the region, crude oil was trading closer to $60 per barrel.
Energy experts say the worst-case scenario would involve a prolonged shutdown of the Strait of Hormuz combined with extensive damage to energy infrastructure across the Gulf. Such a situation could dramatically reduce oil exports from the region and disrupt energy supplies to major economies.
Yergin warned that a prolonged closure of the shipping route could have far-reaching economic consequences. “Well, what would get one to the nightmare scenario would be an extended period of the closure of the Strait of Hormuz combined with extensive damage to the infrastructure,” Yergin said in remarks cited by PBS News.
He added that such developments could push oil prices significantly higher and destabilise financial markets. The impact could be comparable to earlier energy crises, particularly the oil shocks of the 1970s that triggered global economic downturns.
Thewar in the MiddleEast has already expanded beyond direct military exchanges between the two countries. Iran-backed groups such as Hezbollah have launched rocket attacks against Israel, while Iranian forces have carried out missile and drone strikes across parts of the Middle East.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
