Some say this is the most severe oil crisis since the 1970s.
In gas stations across Thailand and Vietnam, fuel has run out, forcing people to work from home; chip factories in South Korea are beginning to worry about helium supplies; Japan has already started discussions about buying oil from Alaska; food relief organizations in Africa are concerned about where to find food if the war continues for another three months.
All these events are happening simultaneously this week—the impact of the war on the world is more chaotic than we imagined.
Since the Middle East war began, the Strait of Hormuz has effectively come to a standstill, leaving nearly 20% of the world's crude oil and liquefied natural gas supply hanging in the balance. Oil prices have surged 40% since before the war, reaching $110 per barrel, and Iran has publicly declared its goal to push this number to $200. Ras Laffan LNG facility in Qatar was bombed—a supply node accounting for 20% of global natural gas trade—and it could take years to restore production capacity.
