The escalating conflict in West Asia has triggered fears of a major global oil shock as disruptions around the Strait of Hormuz threaten one of the world’s most critical energy routes. Nearly 20 million barrels of oil per day – about 20% of global supply – pass through the strait, and shipping traffic has dropped sharply amid insurance withdrawals and security concerns. Crude prices have already surged above $100 a barrel, while LNG prices in Europe and Asia are also rising due to halted exports. Analysts warn that if disruptions last more than a few weeks, the world could face inflation spikes, supply shortages and increased recession risks.
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