Middle East conflict drives lasting shifts in global oil market

The war that erupted in late February between the United States, Israel and Iran is accelerating fundamental changes in the worldwide energy system. The fighting has highlighted the vulnerability of the Strait of Hormuz, through which roughly 20 % of global oil and LNG supplies normally pass, prompting producers, traders and shipping firms to seek alternative routes.

Countries are investing in new pipelines and transport corridors – such as Saudi Arabia’s East‑West line, infrastructure in the United Arab Emirates and an Iraq‑Turkey route – while oil‑importing nations are diversifying suppliers to reduce exposure to a single chokepoint. Although oil prices fell after the initial shock, analysts say the market is unlikely to revert to its pre‑war model, and investors remain cautious about new energy projects in the region. The structural adjustments are expected to shape the global oil market for years to come.