The war involving Iran has triggered the most severe energy shock in decades, centred on the closure of the Strait of Hormuz—a corridor that normally carries about a fifth of global oil and liquefied natural gas.
With flows disrupted, oil prices have surged toward historic highs, at times nearing US$170 per barrel, sending fuel and electricity costs upward worldwide. The result is a chain reaction: inflation pressure, weaker trade, and heightened economic uncertainty.
In Asia, supply shortages have forced a return to coal-fired power—an uncomfortable but immediate response to constrained LNG imports. Meanwhile, economists warn that prolonged disruption could remove up to 13–14 million barrels per day from global supply, a shock large enough to reshape markets and policy decisions.
This moment reinforces a core reality often explored by Resource Works: energy security depends on reliable supply, diversified infrastructure, and pragmatic policy. As explored in global oil market volatility, LNG’s role in energy security, and Canada’s natural gas advantage, stable jurisdictions matter more than ever.
Here are some pictures.
Ian Biana writes for the Resource Works Accelerate team and can be reached at [email protected].
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