Middle East Crisis: Energy shocks deepen as strikes hit infrastructure
Tehran, Iran (PANA) - The crisis in the Middle East continues, with strikes and counter-strikes reported across the region, driving civilian casualties, displacement and rising humanitarian needs.
Energy infrastructure has also been affected, with reports of an oil refinery struck in Kuwait and warnings from Qatar that liquefied natural gas export capacity could fall following an attack on the Ras Laffan facility.
Oil prices remain above $100 a barrel, underscoring the growing global economic impact.
UN agencies warn of mounting pressure on health systems, supply chains and essential services, as they scale up emergency assistance despite access constraints.
The fallout from the war in the Middle East is rippling far beyond the Gulf, disrupting fuel supplies, shipping routes and supply chains across Asia and the Pacific, with some of the region’s most vulnerable economies already feeling the strain through rising prices, rationing and threats to jobs, food security and remittances.
The immediate impact is visible in sharp increases in transport costs, energy and fertilizer prices, alongside currency pressures and financial market volatility.
“The most immediate economic impact…are considerable increases in freight costs and oil, gas and fertilizer prices,” Hamza Ali Malik, Director of Macroeconomic Policy Division at the UN’s Asia-Pacific development arm (ESCAP) told UN News.
He warned that higher inflation, weaker exports and rising debt risks are likely to follow.
Strait of Hormuz shockwaves
At the centre of the disruption is the Strait of Hormuz, one of the world’s most critical maritime chokepoints.
The narrow passage carries around a quarter of global seaborne oil trade, along with significant volumes of liquefied natural gas and fertilizers. Escalating hostilities have brought ship transits close to a halt, triggering immediate reactions in global energy markets.
Volatile Brent Crude oil prices have surged well above $100 per barrel, while higher transport and insurance costs are adding to the strain.
These shocks are reverberating across supply chains and raising concerns not only for trade and development, but also for the delivery of humanitarian assistance and essential goods.
The impact is being felt across all sea routes, with major shipping companies suspending services to the Middle East and containers stranded in congested ports.
At least 20,000 seafarers in the region are also affected.
“There are significant early signs of disruption to shipping routes,” said Rupa Chanda, Director of Trade Division at ESCAP, adding that the effects are already hitting key industries.
Shortages of helium and specialised gases from the Gulf are creating a “near-immediate crisis” for semiconductor and advanced electronics production, while disruptions to petrochemical feedstocks threaten manufacturing across major Asian economies
-0- PANA RA 20March2026
