Energy Crisis The Domino Effects of the Iran-US War

Related Vendors

Chandra Asri Petrochemicals

Formosa Plastics Corp.

Saudi Aramco

Dow Europe GmbH

SABIC Deutschland GmbH

more less

Shell Deutschland Oil GmbH

EagleBurgmann Germany GmbH & Co. KG

Pörner Ingenieurgesellschaft mbH

Maag Pump Systems AG

less

Today, the world is witnessing a deepening energy crisis. The Iran–US war has exposed the vulnerability of the global oil, gas, and petrochemicals industry. Its impact is not confined to one region—it has triggered a domino effect across continents.

With soaring oil prices, back-to-back force majeure announcements, and energy shortages in different regions of the world, the Iran-US war has completely disrupted the global oil & gas industry. Be it the closing of the vital Hormuz Strait, through which an average of 20 million barrels per day of crude oil and oil products and almost 20 % of global Liquified Natural Gas (LNG) exports are shipped, or the numerous attacks on energy infrastructure in the oil and gas rich Gulf region, the conflict has damaged the industry’s backbone.

The Gulf countries supply a substantial portion of the world’s energy and the most vulnerable regions by this ongoing war are Asia followed by Europe. In Asia, China and India are extremely reliant on energy supplies from the Gulf. Europe is once again in an energy crisis as it has been unable to secure energy supplies via the Hormuz Strait and Qatar Energy has also halted its LNG supplies post drone attacks on its facilities. Qatar supplies 12 % –14 % of Europe’s LNG since Russia’s invasion of Ukraine.