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Industry Insight How is the Iran-US War Impacting the Oil & Gas, Petrochemicals Industry?

From Ahlam Rais 6 min Reading Time

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On February 28, 2026 the Iran-US war began, triggering the most severe supply shock ever witnessed in the global oil and gas market in recent times. The Gulf countries supply a substantial portion of the world’s energy, and with the closure of the Strait of Hormuz and multiple attacks on its energy infrastructure, industry majors in the region have suspended exports of oil & gas as well as petrochemicals under force majeure.

With the US and Israel jointly firing the first shot on Iran, the world is now witnessing major cascading effects—from soaring global oil and gas prices, to industry leaders declaring force majeure, and even predictions that the war could trigger a global economic recession! (Source: © FOYSAL - stock.adobe.com)
With the US and Israel jointly firing the first shot on Iran, the world is now witnessing major cascading effects—from soaring global oil and gas prices, to industry leaders declaring force majeure, and even predictions that the war could trigger a global economic recession!
(Source: © FOYSAL - stock.adobe.com)

It’s been over a month since the start of the Iran-US war but the conflict is showing no signs of de-escalation at the time of writing this piece. With the US and Israel jointly firing the first shot on Iran, the world is now witnessing major cascading effects—from soaring global oil and gas prices, to industry leaders declaring force majeure, and even predictions that the war could trigger a global economic recession! But, how did we get here? And how is the current conflict directly impacting the oil & gas as well as petrochemicals industry? Let’s decode this.

Closure of the Strait of Hormuz

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