Global Energy Crisis Deepens as Iran War Disrupts Oil Supply, 60 Nations Scramble for Solutions

The US and Israel’s surprise attack on Iran in late February has ignited a regional war that is now reverberating through global energy markets with devastating impact. Iran’s blockade of the Strait of Hormuz, through which about 20 percent of the world’s oil and liquified natural gas normally passes, combined with repeated strikes on energy infrastructure by both sides, has sent fuel prices soaring and triggered what the International Energy Agency (IEA) calls the “largest supply disruption in the history of the global oil market.”

This isn’t just a Middle East problem anymore. According to analysis by Carbon Brief, 60 nations have already introduced nearly 200 emergency measures to respond to the crisis. These range from cutting fuel taxes to ease the burden on consumers, to more drastic steps like driving bans, fuel rationing, and school closures aimed at reducing demand. Asia, heavily reliant on oil and gas from the Middle East, has felt the brunt of the crisis and leads in the number and severity of responses. Countries like Indonesia, Japan, South Korea, and India are spending billions on fuel subsidies, while the Philippines has declared a “state of national emergency” with restrictions on air conditioning and incentives for public transit.

Europe, still reeling from its 2022 energy crisis due to Russian gas dependency, is less directly exposed but not immune. Many European countries remain reliant on imports from the Middle East, including Qatar’s LNG, and have rolled out aid packages to protect consumers from price shocks. Spain, for example, has announced a €5 billion relief package despite having a relatively renewable-powered grid.

African nations face a double challenge: less direct exposure to Middle Eastern fossil fuels but severe fuel shortages and rising import costs that threaten economic stability. Countries like Ethiopia, Kenya, and Zambia are already grappling with these pressures. The Americas have so far been relatively insulated, though Chile stands out given its heavy fuel import needs.

The crisis lays bare the peril of global dependence on fossil fuels from volatile regions and the failure of many governments to build resilient, renewable energy infrastructures. While some countries are ramping up renewable projects, others are doubling down on coal and other fossil fuels to plug immediate gaps, risking long-term climate damage.

Even as a temporary ceasefire has been declared, the damage to critical energy infrastructure and ongoing geopolitical uncertainty mean the energy crisis is far from over. For ordinary people worldwide, this conflict is not a distant war but a direct hit to their wallets and daily lives. The scramble for emergency measures underscores the urgent need for a fundamental rethink of global energy policies and a move away from fossil fuel dependency that fuels both climate disaster and geopolitical instability.