Iran

The Trump administration has scrambled to stand up a $20 bn shipping reinsurance plan to smooth the reopening of the Strait of Hormuz. But until the violence ends, energy flows won’t return to normal, experts say.

Asian LNG demand is already feeling the effects of the war in Iran, with around 80% of Qatari production sold to buyers in Asia-Pacific.

Oil and gas shipments through the Strait of Hormuz have stopped. Risk from war is compounded by terminated insurance coverage for shipping through the Persian Gulf.

About a fifth of the global LNG trade is at a standstill with the Strait of Hormuz blocked due to the U.S.-Israeli war on Iran.

Further escalation risks wider regional destabilisation and could deepen the strain on Iran’s already struggling economy, analysts warned.

Attacks on key energy infrastructure sites have exacerbated electricity supply concerns, potentially stoking domestic discontent and highlighting security vulnerabilities.

Oil refineries, gas export terminals, and pipelines have been damaged by missile strikes in the Israel-Iran conflict. War in the Middle East could spread chaos and volatility.