Axios: War On Iran War Sends Oil Prices Soaring 50%

By Al Ahed Staff, Agencies

The war on Iran is set to reshape the global multitrillion-dollar oil market, turning a previously open system into a more fragmented and weaponized landscape.

Meanwhile, oil prices have surged significantly since the outbreak of the war, rising by around 50% compared to pre-war levels.

In this context, the war on Iran has pushed oil prices to record highs as countries scramble for scarce supplies, driven in part by Tehran’s closure of the strategic Strait of Hormuz. Daniel Yergin called it “the mother of all supply chain disruptions,” with roughly 16% of global oil output removed—far exceeding past crises like the 1990 Iraq invasion or the 1973 oil embargo.

Historically, major energy and geopolitical crises have historically reshaped the global economy: COVID-19 accelerated manufacturing reshoring, the Ukraine war reduced European dependence on Russian gas, and the 1970s oil crisis shifted US energy use.

Likewise, energy disruptions also alter global power dynamics, as seen with the Suez Crisis and the UK’s decline. Analysts now wonder if the US could face a similar turning point, though the Iran war’s full impact remains uncertain.

In addition, the 1973 OPEC oil embargo sent prices soaring, highlighting the need for global cooperation. As Yergin noted, “multinational, international cooperation is preferable to individual action.”

Meanwhile, analysts Jason Bordoff and Meghan O’Sullivan say a more fragmented, conflict-driven world is pushing states to treat energy as a strategic tool rather than a shared resource.

The Iran crisis, centered on leverage over the Strait of Hormuz, is seen as a potential turning point, signaling a shift from cooperation and stability toward competition, fragmentation, and geopolitical leverage in global oil markets.

Finally, the US is expected to extend a waiver allowing limited purchases of Russian oil to help stabilize global energy prices amid the ongoing West Asia war, Reuters reported.

The move came as earlier sanctions relief as oil prices spiked above $100 per barrel after the US-“Israeli” escalation on Iran, highlighting Washington’s balancing act between sanctions pressure on Russia and efforts to contain market volatility.