Global energy markets face disaster as Strait of Hormuz closure drives oil surge
Updated
Updated · WSWS · May 2
Global energy markets face disaster as Strait of Hormuz closure drives oil surge
10 articles · Updated · WSWS · May 2
The World Bank said its energy price index will rise 24% this year, while oil briefly topped $120 a barrel and 34% of seaborne crude trade remains exposed.
It said the Iran war is spreading inflation from fuel to food, fertiliser, metals and chemicals, with urea up 50% and aluminium up 10% as Middle East exports stall.
The bank warned prolonged oil above $100 could push 45 million more people into acute food insecurity, while The Economist said shrinking cargoes and refinery cuts risk a wider fuel-system seizure.
Will this oil shock accelerate the green energy transition or derail climate goals by reviving demand for other fossil fuels?
Is the world ignoring a looming food crisis as the oil blockade cripples the global fertilizer supply and threatens future harvests?
Are central banks trapped between fighting runaway inflation and triggering a devastating recession and mortgage crisis for millions?
Strait of Hormuz Blockade Cuts Over 13 Million Barrels Per Day, Triggering Historic Global Energy Crisis
Overview
The US naval blockade of Iranian ports in April 2026, combined with Iran's partial closure of the Strait of Hormuz, has caused the largest oil supply shock in modern history, cutting global exports by over 13 million barrels per day. This disruption led to a historic surge in oil and jet fuel prices, forcing airlines to raise fares and triggering widespread inflation. The blockade also disrupted fertilizer and industrial material supplies, worsening global food costs and supply chain challenges. Despite emergency oil releases and alternative routes, the crisis is accelerating a global reassessment of energy security, highlighting the urgent need for diversification and resilience amid growing economic and geopolitical risks.