Energy Blues: Global oil shortages loom over prolonged supply disruptions from lran war — Experts

*Energy executives and analysts opine that any prolonged supply disruptions could trigger higher gasoline prices, inflation for consumers, and slower economic growth worldwide in view of the ongoing US-Israel war against Iran with attendant logjam at the strategically critical Strait of Hormuz

Gbenga Kayode | ConsumerConnect

Energy executives and analysts have said global oil shortages are beginning to emerge as the ongoing United States- Israel war against Iran continues to disrupt shipping through the ‘strategically critical Strait of Hormuz.

ConsumerConnect reports United States President Donald Trump Sunday, May 17, 2026, via his truth social media account, warned Iran  against delay in ratifying the American country’s five-point peace deal.

Inflation: Grocery prices skyrocketing over increasing shipping costs –Report

Trump also threatened the Arabian country to act fast, or face the consequences of any delay in agreeing to his peace terms soonest.

In regard to far-reaching effects of the ongoing energy supply disruptions, particularly through the Strait of Hormuz, energy analysts observed that prolonged supply disruptions could trigger higher gasoline prices, inflation, and slower economic growth worldwide.

Trade logistics affected by stranded ships at Strait of Hormuz

Energy analysts opined that consumers might soon feel the impact through skyrocketing fuel costs, more expensive airline tickets, and higher prices for everyday goods transported by truck, ship, and air.

According to experts, one of the immediate telling effects of the Iran war is a sharp rise in gasoline prices across economies. However, an industry executive is warning that things could get worse going forward.

Chevron CEO warns global economy tilting towards new energy shock

Mike Wirth, Chief Executive Officer (CEO) of

Chevron, is warning that the global economy could be headed towards a new energy shock as the war involving the US, Israel and Iran continues to disrupt oil shipments through the strategically critical Strait of Hormuz.

Wirth stated this while speaking at the Milken Institute Global Conference.

The Chevron Chief Executive also said the world is starting to experience “physical shortages” of oil as supplies tighten and strategic reserves are increasingly tapped to stabilise markets.

The deadlocked Strait of Hormuz, located between Iran and Oman, handles roughly 20 percent of the world’s crude oil shipments, according to reports.

Therefore, continued disruptions in the region have raised fears of a prolonged supply crunch similar to the oil crises of the 1970s, agency report noted.

Wirth said the economic impact could ultimately rival those historic energy shocks.

He also stated: “We will start to see physical shortages,” noting that, economies “are going to have to slow” as demand adjusts to constrained supply.

Most likely to affect Asia

Industry analysts say Asia is likely to feel the effects first because many countries there rely heavily on Persian Gulf oil.

Europe could follow if disruptions continue, particularly in jet fuel and diesel markets.

Shortages are less likely in the US. But even though the United States is a net exporter of crude oil, American consumers are still expected to face higher prices because oil is traded globally, report said.

According to AAA, the national average price of regular gas is $4.51 a gallon. It was $2.98 on February 28, the day before the war started.

Energy supplies falling fast, says IEA

Meanwhile, the International Energy Agency has warned that global oil inventories are falling at one of the fastest rates on record. Some analysts as well estimated that worldwide stockpiles have dropped by hundreds of millions of barrels since the conflict escalated.

For weeks, consumers have seen the impact at the pump.

National average gasoline prices have climbed sharply over the past several weeks, while jet fuel prices have surged even faster, putting pressure on airlines and shipping companies.

Economists equally warned that rising energy costs often spread quickly through the broader economy because fuel affects transportation, manufacturing, and food distribution.

That could mean higher grocery prices, increased delivery costs and more expensive travel in the months ahead.

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