Energy expert warns record oil disruption as Strait of Hormuz is effectively closed
Mar 8th 2026
Daniel Yergin warns that Iran attacks have effectively closed the Strait of Hormuz, forcing Gulf producers to cut output, sending oil and gas prices sharply higher, and raising the risk of a prolonged global energy shock.
- Daniel Yergin says the world faces the biggest disruption in oil production in history if the Strait closure continues.
- Crude prices jumped about 36% over the past week, with Brent near $92.70 and WTI near $90.90 per barrel.
- About 20% of global oil and LNG flows move through the Strait of Hormuz, and attacks have effectively halted exports from Gulf producers.
- Iraq has cut output by roughly 60% to about 1.7 to 1.8 million barrels per day, while Kuwait and the United Arab Emirates have also reduced production and Qatar has throttled LNG.
- Asian spot LNG prices have almost doubled and European natural gas prices are up roughly 50% since the fighting began.
- The main risk is the duration of the conflict, because severe infrastructure damage and a sustained strait closure could trigger a long energy shock and a global recession, while US offers to escort tankers and a $20 billion reinsurance plan face major logistical limits.