Mideast strikes push oil prices up and threaten wider price shocks ahead of midterms
Mar 6th 2026
After US strikes and a wave of attacks in the Gulf, oil and gas shipments through the Strait of Hormuz have been disrupted, sending fuel prices higher and threatening broader supply chain and food price effects as Washington seeks fixes before the midterms.
- Oil prices jumped roughly 20 percent in the week after strikes and attacks in the Gulf.
- About 20 percent of global oil passes through the Strait of Hormuz and shipping there has largely stopped after recent attacks on tankers.
- Iraq cut oil exports by about 1.5 million barrels per day because it cannot load tankers or has run out of storage.
- Refineries in Saudi Arabia, Kuwait, and Bahrain have slowed or paused operations and a Bahraini refinery was reportedly hit by a drone.
- Qatar halted some LNG production after a drone attack, disrupting global gas supplies and industrial feedstocks.
- Fertilizer and petrochemical shipments that transit the Gulf are disrupted, creating near-term risks for food and consumer goods prices.
- The Pentagon estimates the conflict costs about $1 billion per day, and the White House is pressing for ways to lower fuel costs ahead of November midterm elections.