US Economy Faces a ‘Standstill’ If Oil Hits $140 a Barrel

The war in Iran has sparked a global energy crisis that has rocked markets and sent oil prices surging to their highest level in four years. The chances of a quick resolution appear to be deteriorating as the conflict escalates, as do hopes that the U.S. economy might escape unscathed. The war has effectively blocked off the Strait of Hormuz, a vital energy corridor that links oil and gas producers in the Persian Gulf with the rest of the world. The closure has cut off the roughly 20 million barrels of oil that normally flow through the strait each day, according to the International Energy Agency. The IEA estimates the conflict is removing roughly eight million barrels daily from the global supply, making the crisis the biggest oil supply disruption in history. Oil prices have been on a rollercoaster as a ...

US Eyes Venezuelan Oil as Ties Thaw and Pressure Over Fuel Prices Rises

Seven years after it was lowered, the American flag is flying again over the U.S. Embassy in Caracas, as Washington eyes Venezuelan oil to ease fuel prices amid global tensions.The U.S. and Venezuela have normalized diplomatic relations after a break that began in 2019. At the time, the U.S. recognized Juan Guaido, not Nicolás Maduro, as the legitimate president of Venezuela, and Maduro threw out the American diplomats. Now, the U.S. has officially recognized Maduro's vice president as the leader of Venezuela. Enemies have become friends, and a lot of this friendship is convenience — the U.S. wants its oil companies in Venezuela, and Venezuela needs to restart its oil industry.Journalists visiting Maracaibo, the capital of oil in Venezuela, see the decay of the oil industry. Once-grand hotels are falling apart, homes are abandoned, malls are empty. The workers here ...

Losing One Gas Rig Would Mean Billions in Damage

Missile threats from Iran and Hezbollah force Israel to halt offshore gas production for the third time since the Gaza war.The government's efforts to keep Israel's economy functioning as missile launches from Iran and precision rockets from Lebanon continue have largely bypassed the natural gas sector. More than two weeks into what officials are calling the second war with Iran, activity at Israel's offshore gas platforms in the Mediterranean has been shut down once again. It is the third shutdown of gas platforms since the outbreak of the October 7 war. As a result, the energy sector has once again been forced to rely on more expensive and polluting fuels such as coal and diesel.Since the beginning of the current confrontation with Iran, the Karish platform operated by Energean and the Leviathan platform operated by a partnership between Chevron, NewMed ...

US DOE Orders Restart of Santa Ynez Oil Flows as Iran War Triggers Emergency Powers

United States Energy Secretary Chris Wright has directed Sable Offshore Corp to reactivate the Santa Ynez Unit (SYU) production facility and the associated pipeline system in California, citing security risks amid the disruption of oil shipping in the Strait of Hormuz."Sable's facility can produce approximately 50,000 barrels of oil per day, a 15 percent increase to California's in-state oil production that can replace nearly 1.5 million barrels of foreign crude each month", the Department of Energy said in an online statement.SYU halted operations in 2015 after an oil spill that released 123,000 gallons of oil and caused environmental damage to 150 miles of coastline. The project was owned by Plains Pipeline LP at the time of the spill. Plains Pipeline sold it to Exxon Mobil Corp in 2022. Sable acquired SYU from ExxonMobil in 2024.In May 2025, Houston-based Sable said ...

Trump Announces ‘Bombing Raid’ at Kharg Island

In a statement posted on his Truth Social page late on March 13, U.S. President Donald Trump announced a "bombing raid" at Kharg Island."Moments ago, at my direction, the United States Central Command executed one of the most powerful bombing raids in the History of the Middle East, and totally obliterated every MILITARY target in Iran's crown jewel, Kharg Island," Trump said in the statement."Our Weapons are the most powerful and sophisticated that the World has ever known but, for reasons of decency, I have chosen NOT to wipe out the Oil Infrastructure on the Island," he added."However, should Iran, or anyone else, do anything to interfere with the Free and Safe Passage of Ships through the Strait of Hormuz, I will immediately reconsider this decision," Trump warned."During my First Term, and currently, I rebuilt our Military into the Most ...

Iran Denies Seeking Truce as Dubai Oil Port Damaged

Iran denied US President Donald Trump's assertion that it wants ceasefire talks, launching fresh attacks across the Persian Gulf and forcing a suspension of flights at Dubai's main airport. The United Arab Emirates and Saudi Arabia reported drone and missile attacks overnight into Monday. Dubai halted flights at its main airport following a fire at a fuel tank that it said was caused by an Iranian drone. It announced a gradual resumption a few hours later, though Emirates said some of its scheduled flights for the day would be canceled. The key UAE oil-export port of Fujairah was hit again on Monday, following a strike on Saturday that forced it to suspend some shipments for about a day. In Abu Dhabi, a Palestinian civilian was killed because of a missile falling on a car, authorities in the UAE capital said. Israel began airstrikes on ...

Oil’s War-Driven Volatility Pulls in Record Retail Money, Fueling ‘Meme-Style’ Trading

The Iran war news flow-driven oil moves are drawing retail investors into the world's most traded commodity, further fueling volatility. Small investors have poured record sums into oil-linked exchange-traded funds in recent weeks as prices have whipsawed amid the Middle East conflict and fears of extended disruptions to crude flows through the Strait of Hormuz. The rush has prompted some analysts to draw parallels with past retail trading frenzies in stocks such as GameStop or commodities such as silver, signaling that crude oil market could be exposed to "meme-style" trades. "Oil is now definitely a retail 'meme theme'. Retail investors have been piling into the major pure-play oil ETFs ever since the start of the Iran conflict," said Viraj Patel, global macro strategist at Vanda Research. Net retail buying of oil ETFs hit a record $211 million on March 12, surpassing the previous peak ...

Sinopec Slashes Refining Runs as Hormuz Disruption Squeezes Crude Supply

Sinopec, China's biggest oil refiner, has reduced its run rates by 10%, Bloomberg reported today, citing unnamed sources, in response to the supply squeeze resulting from the traffic disruption in the Strait of Hormuz. The size of the cut is equal to about half a million barrels daily. There will also be additional output losses from maintenance operations, the sources said. The refining major accounts for about a third of China's total refined petroleum product output, with an average processing rate of 5.2 million barrels daily, the publication noted in its report. Sinopec imports about half of the crude oil it processes from the Middle East, which makes it highly vulnerable to supply shocks in the region. What's more, the processing rate cut comes smack in the middle of peak refining season in anticipation of the seasonal demand uptick in fuels during ...

Strait of Hormuz Disruption Threatens to Shake Global Economy

The near shutdown of the Strait of Hormuz is beginning to ripple through the global economy, threatening energy supplies, raising fuel prices, and reshaping geopolitical dynamics. The narrow waterway along Iran's southern coast is one of the most important shipping lanes in the world. It connects the oil-rich countries of the Persian Gulf to international markets, and tankers that pass through it carry roughly a fifth of the world's oil, along with significant volumes of natural gas. Now, as war in Iran has brought shipping through the strait nearly to a halt, energy analysts say the consequences are being felt far beyond the Middle East. "The longer that this goes on, the greater impact it's going to have across industries, across regions," said oil market analyst Matt Smith. Smith, who works for the commodities data firm Kpler, has been closely monitoring tanker movements in ...

How the Iran War Could Reshape Global Energy Policy

The U.S.-Israeli attack on Iran and the ongoing conflict in the Middle East have caused the biggest oil disruption in history. The closure of a major transit route between Asia and Europe, as well as restrictions on fossil fuel production in the region, have driven oil and gas prices up, a trend that is set to continue.The U.S. war against Iran has caused the largest oil disruption in history, according to an analysis by consulting firm Rapidan Energy, at double the previous record set during the Middle East conflict in the 1950s. By Monday, an estimated 20 percent of the world's oil supply had been disrupted for nine days, due to the closure of the Strait of Hormuz – a key trade corridor connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea.The closure of the corridor ...

Oil Company Shares Soar to All-Time Highs as Middle East War Turbocharges Price Per Barrel

Shares in big oil companies have soared to all-time highs since the war in ...

Asia’s LNG Lifeline Takes a Hit

Asia is the biggest market for liquefied natural gas. Asia is also the destination ...