Middle East Conflict

The resilience of the global energy system, energy security and supply strategies will be in the spotlight for the foreseeable future as the war in Iran sends global energy prices soaring. With the Middle East conflict running through its second week, the focus of the global energy ecosystem has moved from immediate market shocks to a more fundamental assessment of global energy resilience, according to a panel of global energy experts who took part in a recent webinar organised by Energy Connects.

The global energy landscape is at an inflection point with the ongoing Middle East conflict, with the Strait of Hormuz at a near-total standstill and approximately 25% of global oil and LNG flows at risk. From oil and gas force majeures and LNG production shutdowns to export restrictions and overflowing storage facilities, the fast-paced developments since the beginning of the Iran war signal the return of the geopolitical risk premium to the forefront of market pricing. In this exclusive Energy

G7 economies and the International Energy Agency on Wednesday agreed to release a record 400 million barrels of oil from their strategic stockpiles to combat the volatility in global oil prices, as the Middle East conflict showed no signs of abating in its second week. The IEA said all 32 member countries backed the move, the sixth coordinated stockpile release since the 1970s. US Energy Secretary Chris Wright said Washington would contribute the bulk of ‌the supply, by supplying 172 million barrels.

As the war in Iran sent oil prices soaring, one market holding up unexpectedly well is that of the world’s largest crude importer: China.

The UK Navy said a cargo ship had a fire on board after it was struck by a projectile in the Strait of Hormuz, the latest incident targeting vessels in the key trade chokepoint along Iran’s southern border.

Some urea companies in India have shut down plants or moved up annual maintenance after Qatari supplies of liquefied natural gas, a key feedstock, were suspended due to the Iran war.

The Iran conflict has again underscored the vital importance of the Middle East to global energy markets and economic stability. Dr Carole Nakhle, Founder and CEO of Crystol Energy and Secretary General of the Arab Energy Club, discusses the implications of the Iran strikes for global energy flow, oil prices, and infrastructure, as well as the possible macroeconomic effects and impact on investment sentiment.

Oil smashed through $100 a barrel as more major Middle East producers cut output, with a standstill of tanker traffic through the vital Strait of Hormuz choking off supplies to the rest of the world.

US Energy Secretary Chris Wright sought to counter market warnings about an extended Middle East war, saying global energy supplies are sufficient and the surge in oil prices reflects a “fear premium” that won’t last.

Underneath the glass and wrought iron ceiling of Antwerp’s stock exchange last month, French President Emmanuel Macron addressed a hall full of executives from heavy industries. He wasted no time in diving into the issue everyone cared most about: Europe’s perennially high energy prices.