Iran war's energy impact forces world to pay up

The war in the Middle East has triggered a nightmare scenario for the global energy system, slashing so much supply that consumers around the world must both pay up big and lower consumption.



The effective closure of the Strait of Hormuz, a narrow channel along the Iranian coast, has stopped the passage of 20% of the world’s oil and liquefied natural gas since the U.S. and Israel began airstrikes on Iran on February 28.



Meanwhile, ongoing strikes by Iran and Israel have targeted Middle East energy infrastructure, doing damage to gas fields, oil refineries, and terminals that industry representatives say will take years to repair.



All of that adds up to what the International Energy Agency has already called the worst global energy disruption in history, eclipsing even the Arab oil embargo of 1973 that caused fuel shortages and triggered widespread economic damage.