#energy-markets

#energy-markets

The crisis caused by the US-Israel war on Iran has affected the member states of the Gulf Cooperation Council (GCC) at different levels. Oman has barely felt any shock as its ports and terminals continue operating as usual. Saudi Arabia and the United Arab Emirates have been able to reroute some oil exports through terminals in Yanbu and Fujairah, respectively, to bypass the Strait of Hormuz. Kuwait, Bahrain and Qatar, on the other hand, have been practically cut off from the global market and are facing the prospect of economic contraction.

Fervo Energy, the geothermal energy startup, saw its market valuation surpass $10 billion in its public market debut, an increase driven by demand for AI data centers - and the energy that can power them.

"This is a system shock," says Nigel Green, CEO of deVere Group. "You have a material energy supply disruption and a structural shift toward fragmentation."

BP's oil trading result is expected to be exceptional in the first quarter of its financial year, driven by significant market volatility after Tehran's effective closure of the key strait of Hormuz shipping route.

Australia's economic insulation is no longer guaranteed by geography, as geopolitical unrest in the Middle East can swiftly impact its economy through international energy markets.

Citi's upgrade reflects a broader geopolitical reality reshaping global energy markets. The Iran war is accelerating the flight of European and Asian buyers toward secure, long-term U.S. LNG supply contracts.

Rising inflation concerns, hawkish monetary policy signals, and escalating geopolitical tensions weighed on risk assets. Energy markets are adding to the pressure. Oil prices surged following renewed attacks on energy infrastructure in the Middle East, intensifying concerns about inflationary pressure.

The Iranian military's blockade of the Strait of Hormuz in retaliation for the U.S. and Israeli airstrikes on Tehran has sent energy markets into turmoil. A quarter of the world's natural gas, a fifth of its crude oil, and tons of critical materials for fertilizers and other petroleum products pass through this strategic Persian Gulf waterway.

Weak performance in several service sectors offset gains in retail and wholesale trade, reinforcing concerns about the pace of economic recovery. Japan relies heavily on oil imports from the Middle East, making it particularly sensitive to disruptions in the region.