Global Energy Crisis Escalates Amid U.S.-Israel War on Iran

The ongoing conflict between the United States, Israel, and Iran, which escalated on February 28, 2026, has led to the effective closure of the Strait of Hormuz, a critical maritime route through which approximately 20% of the world's oil and liquefied natural gas (LNG) typically passes. This disruption has resulted in a significant global energy crisis, with the International Energy Agency (IEA) reporting a loss of 11 million barrels per day from the market—more than the combined impact of the oil shocks of the 1970s. The crisis has triggered soaring oil prices, with Brent crude reaching over $100 per barrel, and has severely affected economies worldwide, particularly in Asia.

IEA chief warns Iran conflict triggering ‘worse than 1970s’ energy crisisTimes of IsraelBangladesh fuel crisis worsens in wake of US-Israel war on IranGlobal Energy Crisis Deepens as US-Israeli War on Iran Disrupts SuppliesIran-U.S. war: Full list of countries that are enforcing stringent curbs to tackle energy crisis across worldChristian Science MonitorBBC News

Countries across Asia are implementing drastic measures to cope with the energy crisis. In the Philippines, the government declared a national emergency, prompting jeepney drivers to protest against rising fuel prices, which have drastically reduced their earnings. Farmers in Bulacan have halted planting due to soaring costs, while Sri Lanka has declared Wednesdays a public holiday to conserve fuel. In Myanmar, an alternate day policy for private vehicles has been introduced to manage fuel shortages.

Iran-U.S. war: Full list of countries that are enforcing stringent curbs to tackle energy crisis across world

India, heavily reliant on imports for its liquefied petroleum gas (LPG), has experienced significant disruptions, with Prime Minister Narendra Modi warning of tough days ahead as protests over cooking gas shortages erupted. The ceramics industry in Gujarat has shut down due to a gas shortage, affecting 400,000 workers. In Bangladesh, panic buying has led to long queues at petrol stations, exacerbated by limited daily allocations from oil companies.

Bangladesh fuel crisis worsens in wake of US-Israel war on Iran

Fatih Birol, the IEA's executive director, emphasized the severity of the crisis, stating, "No country will be immune to the effects of this crisis if it continues to go in this direction." He highlighted the need for global efforts to address the situation, including the reopening of the Strait of Hormuz. In response to the crisis, the IEA has coordinated the release of 400 million barrels of oil from strategic reserves, although Birol cautioned that this is not a long-term solution.

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U.S. President Donald Trump has issued threats to Iran, demanding the reopening of the strait within 48 hours or face military action. Iran has responded with threats to target energy infrastructure in the Gulf region, further escalating tensions.

Global Energy Crisis Deepens as US-Israeli War on Iran Disrupts Supplies

Critics argue that government responses to the crisis have been inadequate. In the Philippines, transport federation Manibela has called for a nationwide strike, expressing dissatisfaction with government subsidies that fail to address the ongoing fuel price hikes. Farmers and workers across Asia have voiced concerns that the measures taken are insufficient to alleviate their struggles amid rising costs.

Can Indonesia survive energy crisis as Iran war sends oil prices through the roof?

As the conflict continues, the potential for further escalation remains high, with analysts warning that the energy crisis could lead to long-lasting economic repercussions. Countries are urged to consider alternative energy sources and conservation measures to mitigate the impact of the ongoing crisis. The situation remains fluid, and the global community is closely monitoring developments in the region.

Bangladesh fuel crisis worsens in wake of US-Israel war on Iran