A sharp supply hit from the Middle East war has triggered a nightmare scenario, leading to a global energy crunch unseen in years, leaving consumers to pay more and cut 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 (LNG) since the U.S. and Israel began airstrikes on Iran on Feb. 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…