How the Iran war could create a new global order in oil

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illuminem summarises for you the essential news of the day. Read the full piece on Axios or enjoy below:

🗞️ Driving the news: The war involving Iran may be reshaping the global oil market, with disruptions around the Strait of Hormuz pushing energy systems toward a more fragmented and politically weaponized structure

🔭 The context: Oil prices have surged roughly 50% since the war began, with physical oil markets hitting record prices as countries scramble to secure supply
• Analysts warn that Iran’s effective control over the Strait of Hormuz, a critical global shipping lane, is disrupting the traditionally open global oil market
• Energy historian Daniel Yergin described the situation as “the mother of all supply chain disruptions”

🌍 Why it matters for the planet: Persistent geopolitical energy shocks can delay the transition away from fossil fuels by reinforcing short-term reliance on oil and gas while driving investment in new extraction and infrastructure
• At the same time, volatility can accelerate efforts by some countries to shift toward domestic renewable energy to reduce exposure to fossil-fuel geopolitics

⏭️ What’s next: If the disruption persists, countries may increasingly treat energy as a strategic security asset rather than a global commodity
• Analysts warn this could lead to regional energy blocs, higher prices, and a more politicized energy system, potentially reshaping global trade and the role of the U.S. dollar in energy markets

💬 One quote: “This is the mother of all supply chain disruptions.” — Daniel Yergin

📊 One stat: About 20% of global oil shipments normally pass through the Strait of Hormuz, making it one of the world’s most critical energy chokepoints

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