Iran War: From Asia To Europe, How Are Nations Coping With Rising Oil & LNG Prices?

Last Updated:March 09, 2026, 17:18 IST

As financial markets in Asia and Europe plunge, governments are desperately seeking ways to insulate themselves from the crippling energy costs

Brent crude surged to $120 per barrel, triggering a global energy crisis and sending governments scrambling amid the ongoing conflict in West Asia. 

Experts said the global economy is facing its most significant threat since the 1970s as energy markets face a massive supply shock due to the escalating war in the Gulf, where both Iran and US-Israel targeted major oil infrastructure over the past three days.

According to reports, benchmark Brent crude has surged past $118 per barrel with some intraday trading sessions seeing prices spike dangerously close to the $120 mark. This is primarily driven by the effective closure of the Strait of Hormuz, a vital maritime artery through which approximately 20 percent of the world’s total petroleum and LNG (liquefied natural gas) flows daily.

With the Islamic Revolutionary Guard Corps (IRGC) claiming control over the strait and threatening ships attempting to pass, there has been a near-total halt of tankers carrying oil from major producers like Saudi Arabia, Iraq, and Kuwait. This has threatened global economic stability, resulting in a surge in “imported inflation" as fuel costs cascade through industrial supply chains.

Experts said every 10 percent rise in oil prices typically adds 0.4 percent to global inflation, and sustained high prices could slash global GDP growth by up to 0.25 percent. As financial markets in Asia and Europe plunge, governments are desperately seeking ways to insulate themselves from the crippling energy costs.

News world Iran War: From Asia To Europe, How Are Nations Coping With Rising Oil & LNG Prices?

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