The main cause of the crisis is the escalation of conflict in the Middle East and the closure of the Strait of Hormuz—one of the world's most important oil transportation routes. Approximately 20% of global oil supply passes through this narrow maritime passage, and its blockade is already causing serious disruptions in the energy market, reports CNN.
Crude oil prices have already surged sharply, exceeding $100 per barrel, with analysts warning they could rise further if the crisis continues.
This price increase does not only affect fuel. Oil is a key raw material for the production of plastics, chemicals, transportation, and agriculture, meaning that price hikes could impact nearly all products, from food to electronics.
As energy costs rise, companies worldwide are already beginning to pass on additional costs to consumers. This means: more expensive fuel and transportation, rising food prices, increased production costs, and potential inflation growth.
In some countries, fuel shortages and panic buying are already being recorded, while governments are considering emergency measures to stabilize the market.
In South Korea, where people are panic-buying trash bags, the government has encouraged event organizers to minimize the use of single-use items. Taiwan has launched a hotline for manufacturers running out of plastic, while rice farmers told local media they might raise prices because they cannot obtain vacuum-sealed bags.
In Japan, the oil crisis has raised fears that patients with chronic kidney failure may not receive adequate treatment due to a shortage of plastic medical tubes used in hemodialysis. Malaysian glove manufacturers say a shortage of the petroleum byproduct needed to produce rubber latex is threatening global supplies of medical gloves.
"This is spilling over into everything very, very quickly: beer, noodles, chips, toys, cosmetics," said Dan Martin from a consulting company that helps international partners expand in Asia.
Petroleum derivatives are also needed to produce adhesives for shoes and furniture, industrial lubricants for machinery, and solvents for paints and cleaning processes.
Turmoil in commodity markets and production is putting pressure on global inflation and burdening economic growth. Manufacturers are paying more for energy and raw materials, affecting profit margins and starting to increase prices for consumers. Rising fuel costs are making travel and logistics more difficult, while limited supplies of other materials from the Middle East, such as fertilizers and helium, could lead to more expensive food and electronics.
According to data from the International Energy Agency, the current situation represents the largest disruption in oil supply in the history of the global market.
Analysts warn that a prolonged interruption in deliveries could lead to a global recession, further inflation growth, and disruptions in supply chains.
To mitigate the consequences, some countries are already considering using strategic oil reserves and seeking alternative supply routes. However, experts warn that such measures can only have a short-term effect.
If the crisis deepens, the world could face economic consequences not seen since the oil shocks of the 1970s.