Global economy: Iran war hits gas prices, oil transportation
Central banks are holding off on interest rate changes this week, worried about stagflation as the war in Iran disrupts key Gulf infrastructure and threatens the vital Strait of Hormuz, where much of the world's oil and gas passes through.
War in Iran disrupts vital Gulf infrastructure
Qatar halted operations at its Ras Laffan LNG export complex after a drone strike, temporarily curtailing roughly one-fifth of global LNG exports, sending gas prices soaring in Europe and Asia.
Oil is close to $100 a barrel, shipping is a mess, and many vessels have been unable to procure insurance and insurance availability/pricing has been disrupted.
With inflation rising again, central banks might delay any rate cuts—so borrowing could stay expensive for longer.
OPEC+ is trying to boost oil output, but threats to shipping and the risk of an effective closure of the Strait of Hormuz are complicating efforts to boost supplies.
Even big projects like Qatar's North Field East expansion (33 mtpa, four-train) are now pushed back to a later date (the source article does not specify a revised start date or refer to mid-2026), showing how global tensions can hit everyone's wallet.