Is this the beginning of the worst gas crisis the world has seen?

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

🗞️ Driving the news: Escalating tensions following US and Israeli strikes on Iran have pushed energy markets into turmoil, raising fears that disruptions around the Strait of Hormuz could trigger a global energy shock reminiscent of the oil crises of the 1970s

🔭 The context: A critical energy chokepoint under threat
• The Strait of Hormuz is one of the world’s most strategic energy corridors, connecting the Persian Gulf to global markets
• Around 20% of global oil production, 20% of global LNG shipments, and roughly one-third of global maritime oil trade pass through the strait each day
• Attacks on oil tankers and threats from Iranian officials have already prompted several major shipping companies to halt transit through the route
• As tensions escalate, Brent crude prices have climbed to about $104 per barrel, reflecting market concerns about supply disruptions

🌍 Why it matters for people and the planet: Energy markets are extremely sensitive to disruptions in the Gulf: analysts estimate a potential shortfall of around 10 million barrels of oil per day if the strait were significantly restricted.
• The impact would be felt most strongly in Asia, where countries such as India, Japan, and South Korea depend heavily on Gulf energy supplies.
• LNG markets are particularly vulnerable: roughly 90% of LNG shipments passing through the Strait of Hormuz are destined for Asia, and freight rates for LNG tankers have already jumped more than 40% after Qatar temporarily halted production.
• Higher energy costs ripple through the entire economy because oil and gas underpin transportation, manufacturing, plastics, heating, and global trade.

⏭️ What’s next: Strategic petroleum reserves and existing stockpiles may help cushion the initial shock, reducing the risk of immediate shortages similar to those of the 1970s.
• Some supply could also come from stored or sanctioned oil cargoes currently held on tankers.
• However, if the conflict continues for weeks or months, energy prices could drive broader inflation and economic pressure worldwide.
• The crisis is also strengthening arguments from climate advocates that accelerating renewable energy and electrification could reduce vulnerability to geopolitical energy shocks.

📈 One stat: More than 90% of global transportation relies on oil, meaning any disruption in supply quickly affects the price of goods, travel, and energy worldwide.

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