Disruption of oil trade by war/ How is it posing growing risks to the global economy?

2026-03-04 07:28:00, Kosova & Bota CNA

Disruption of oil trade by war/ How is it posing growing risks to the global

The war in the Middle East is posing growing risks to the global economy, with oil and natural gas prices rising sharply while stock markets are falling. The Middle East is a major producer of oil and natural gas, but its energy exports have been largely cut off from the rest of the world due to the effective closure of the Strait of Hormuz.

Iran has vowed to attack ships trying to pass through the Strait, normally a channel for about a fifth of global oil and liquefied natural gas production each day. The Islamic Republic has also attacked energy infrastructure across the region, causing some producers to halt output and raising the risk of global supplies being disrupted.

Markets are feeling the pressure. On Tuesday, U.S. gasoline prices posted their biggest daily increase since 2005, when Hurricane Katrina hit. Asian markets also fell sharply in the early hours of Wednesday morning, as many countries in the region get most of their crude oil and a significant portion of their gas from Gulf states.

Economists have warned that inflation could rise and economic growth slow around the world if the conflict in the Middle East drags on. On the ground, this translates into chaos.

Myanmar's ruling military junta announced a fuel rationing system on Wednesday due to the conflict. According to Reuters, private cars with even-numbered license plates will only be allowed to drive on even dates, and the same applies to odd-numbered license plates on odd dates.

In Thailand, authorities have urged residents not to panic buy and stockpile fuel and have encouraged government employees to work from home to save fuel. US President Donald Trump on Tuesday ordered US insurance and guarantees for ships traveling through the Persian Gulf and suggested the navy would escort tankers through the strait if necessary.

But if the conflict drags on, it could trigger a humanitarian crisis in the Middle East, according to the UN's humanitarian chief, Tom Fletcher. He warned that food prices would soar, health systems would be strained and basic supplies would dwindle in countries that rely on imports. /CNA