“West Asian crisis: Energy markets face a Hormuz test”, First Post, March 04, 2026
“West Asia has moved from a geopolitical risk to a physical shock. Within 72 hours, Iranian drone strikes have forced QatarEnergy to suspend production at Ras Laffan, the world’s largest liquefied natural gas complex, responsible for roughly a fifth of global LNG supply. Tanker traffic through the Strait of Hormuz (the artery through which about 20 per cent of the world’s oil and a similar share of LNG exports flow) has come to a standstill. Maritime insurers are withdrawing war-risk cover. Saudi refining capacity has been temporarily shuttered. Israel’s Leviathan gas field has been closed. Tankers are idling on both sides of the Gulf.
Markets have reacted accordingly. European benchmark gas prices have surged by as much as 50 per cent, the sharpest move since the 2022 Russia shock. Brent crude has jumped towards $80 a barrel, up double digits in days. Gold has rallied. Equities have softened. The dollar has strengthened. The energy complex is pricing in interruption.
The distinction between oil and gas is now critical.
Oil markets remain tight but not yet broken. The world entered this crisis expecting surplus supply in 2026. Spare capacity exists in Saudi Arabia and the UAE. Strategic reserves in China, Japan and South Korea are substantial. Even the United States retains more than 400m barrels in its Strategic Petroleum Reserve…….”
Read full article at firstpost.com
