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The ongoing conflict in Iran has caused significant turmoil in the global oil markets, with Brent crude oil prices climbing 51% since the start of March, according to LSEG data. This surge has put Brent crude on track for its biggest monthly gain on record, surpassing the previous record of 46% set in September 1990 during the first Gulf War.On Friday, Brent crude closed at $112.57 a barrel, up from $72.48 a barrel on February 27, the day before the US-Israeli war on Iran began. The price of Brent crude traded as high as $119.50 a barrel during March, its highest level since June 2022, after Iran largely closed the Strait of Hormuz, a critical passage for a fifth of global oil and gas.Despite a coordinated release of 400m barrels of oil from emergency reserves announced on March 11, oil prices continued to climb throughout the month. Analysts at BloombergNEF estimate that 9m barrels of oil per day have been knocked off global oil supply due to the Middle East conflict.The conflict has also had a ripple effect on other assets, with gold prices falling by almost 15% since the start of March, on track for its worst month since 2008. The spot price of gold has been under pressure from the sale of about $3bn of bullion by the Turkish Central Bank last week, which cut its reserves by almost 50 tonnes to 772 tonnes to fund efforts to stabilize the Turkish lira.The Dow Jones industrial average has also been impacted, entering a correction at the end of last week, more than 10% below its record high. Stocks fell despite US President Donald Trump's latest extension on planned strikes against Iran's energy infrastructure, as investors anticipated prolonged disruption to oil from the Gulf.“Markets appear to be placing less weight on White House jawboning and focusing more on the underlying supply risks,” said Fawad Razaqzada, an analyst at City Index. Britain's stock market also had a poor month, with the FTSE 100 index falling more than 8% – on track for its worst month since March 2020, when Covid-19 rocked financial markets.

Iranian President Masoud Pezeshkian has issued a stern warning to neighboring countries, urging them not to allow the US and Israel to use their territory to launch attacks against Iran. In a post on X, Pezeshkian emphasized that Iran does not initiate preemptive attacks but will strongly retaliate if its infrastructure or economic centers are targeted. “To the countries of the region: If you want development and security, don’t let our enemies run the war from your lands,” Pezeshkian stated. This message is part of a broader effort by Iran to prevent the escalation of the ongoing conflict with the US and Israel. The conflict began on February 28, when the US and Israel launched air strikes across Iran, resulting in the death of Supreme Leader Ayatollah Ali Khamenei. Since then, the situation has shown no signs of de-escalation, with Israel announcing daily strikes on Iran and Tehran continuing to target its arch-rival and countries hosting US military assets. In recent developments, several Gulf states have been targeted in attacks. In Kuwait, multiple drone attacks damaged the international airport's radar system, while in Abu Dhabi, strikes caused debris to fall near the Khalifa Economic Zone, injuring six people. Iran's military claimed to have struck a Ukrainian anti-drone system depot in Dubai, which it alleged supported US forces. Iranian Foreign Minister Abbas Araghchi also urged regional countries to distance themselves from the US, reiterating Iran's stance that it will not tolerate the use of neighboring territories for hostile actions. The conflict has resulted in significant disruptions across the region, with at least 15 American soldiers wounded in an Iranian attack on a Saudi airbase on Friday. The situation remains volatile, with alarm sirens activated in Bahrain and Saudi Arabia's defense ministry reporting ballistic missile and drone attacks, all of which were allegedly shot down.

Yemen's Houthi rebels have launched a barrage of ballistic missiles at Israel, marking their first such attack since the US-Israel war on Iran began. The assault was announced by Brigadier-General Yahya Saree, a military spokesman for the Houthis, on their Al-Masirah satellite television. The attack targeted what Saree described as 'sensitive Israeli military sites' in southern Israel. The Israeli military reported intercepting one of the missiles. This development comes as Iran and Hezbollah continue to fire on Israel, with sirens sounding around Beer Sheba and near Israel's main nuclear research centre. Saree stated that the strikes 'will continue until the declared objectives are achieved, as stated in the previous statement by the armed forces, and until the aggression against all fronts of the resistance ceases'. This escalation follows a vague statement by Saree on Friday signaling the rebels' intention to join the conflict. The Houthis, who have controlled Yemen's capital, Sanaa, since 2014, had previously stayed out of the US-Israel war. However, they have been involved in attacks on shipping vessels during the Israel-Hamas war, disrupting commercial transit in the Red Sea. Over 100 merchant vessels were attacked with missiles and drones, resulting in two ships sinking and four sailors killed between November 2023 and January 2025. Experts consider the Houthis' entry into the US-Israeli war on Iran as 'very significant'. Mohamad Elmasry, a professor of Media Studies at the Doha Institute for Graduate Studies, noted that if the Houthis were to shut down the Bab al-Mandab Strait, the Red Sea, and the Suez Canal, it would impact two major international shipping waterways, alongside the Strait of Hormuz. Al Jazeera's Nida Ibrahim reported from Ramallah that the opening of a new front in the war is likely to raise questions in Israel about 'the viability of the operations and the way the government is conducting its war'. She expects Israel to retaliate to this attack, as seen in previous instances when Yemen joined the battle.

The Strait of Hormuz, a critical waterway for global oil exports, has seen its traffic plunge by over 95 percent since the US and Israel began strikes on Iran. This disruption has led to a significant increase in pressure on oil and gas markets, with 20 percent of the world's oil and gas typically passing through the strait.To mitigate the impact of the strait's closure, countries in the Middle East are turning to alternative routes for energy exports. Three major pipelines in the region are being explored as potential solutions:Saudi Arabia's East-West PipelineThe East-West Pipeline, also known as the Petroline, is operated by Saudi oil giant Aramco. With a capacity of 7 million barrels per day (bpd), the pipeline runs from the Abqaiq oil processing centre to the Yanbu port on the Red Sea. However, it currently only has the capacity to supply 5 million bpd for exports.UAE's Abu Dhabi Crude Oil PipelineThe Abu Dhabi Crude Oil Pipeline, also called the ADCOP or Habshan-Fujairah pipeline, has a capacity of 1.5 million bpd. Oil exports from Fujairah have risen in the past month, averaging 1.62 million bpd in March compared to 1.17 million bpd in February.Iraq-Turkiye Crude Oil PipelineThe Iraq-Turkiye Crude Oil Pipeline, also called the Kirkuk-Ceyhan Pipeline, has a capacity of 1.6 million bpd but currently only carries around 200,000 bpd. Iraq is among the top five global producers of oil and the second largest within the Organization of the Petroleum Exporting Countries (OPEC).Can these pipelines replace the Strait of Hormuz?While these pipelines can take on some of the capacity of Hormuz, their combined capacity is only around 9 million bpd, compared to 20 million bpd for the strait. Additionally, these pipelines are land-based and vulnerable to attacks and damage in the ongoing conflict.

The Houthis, allied with Iran, have stated they are prepared to intervene militarily if new alliances join the US and Israel against Iran or if the Red Sea is used for hostile operations. The group's military spokesperson, Yahya Saree, made the announcement in a televised speech on Friday.Saree emphasized that their 'fingers are on the trigger for direct military intervention' under these conditions. The warning heightens the risk of a broader regional conflict, especially considering the Houthis' capability to strike targets far beyond Yemen and disrupt shipping lanes in the Arabian Peninsula.The Houthis have controlled Yemen's capital, Sanaa, and much of the northwest since 2014. Following Israel's actions in Gaza, the Houthis have targeted vessels in the Red Sea and carried out drone and missile attacks on Israel, citing solidarity with Palestinians.In response to escalating tensions, Saree also called for an immediate halt to US and Israeli attacks on Iran, Palestine, Lebanon, and Iraq. The Houthis have previously agreed to a truce with the US, which included a commitment to cease attacks on US shipping in the Red Sea.

The UK is on the brink of a medicine shortage crisis, with experts warning that the country is just weeks away from feeling the effects of the ongoing conflict in Iran. The war has already disrupted the supply of essential raw materials, including oil, gas, crop fertiliser, and helium.The pharmaceutical industry, which relies heavily on imports, is particularly vulnerable to these disruptions. India, known as the 'pharmacy of the world', produces a significant proportion of generic drugs and active pharmaceutical ingredients (APIs) used globally. However, with the Strait of Hormuz largely closed due to the conflict, the transportation of these vital supplies is becoming increasingly difficult.Medicine prices are also expected to rise as a result of the conflict. The US-Israel war on Iran has doubled air freight costs, which could make some medicines loss-making to supply to the NHS. While suppliers have long-term pricing agreements with NHS hospitals, they have more flexibility to increase prices for drugs supplied to GP practices and pharmacies.The UK's reliance on imported medicines is significant, with about half of its medicines produced domestically, a third coming from India, and another chunk from the EU. During the Covid pandemic, paracetamol and other painkillers were in short supply in Britain and elsewhere, as drugmakers in India struggled to keep up with demand.Medical distributors typically stock six to eight weeks of supplies to avoid shortfalls, but if the conflict drags on, drug shortages could emerge in only a few weeks' time. Experts warn that the overall ripple effect on the industry is significant, with the patient ultimately picking up the tab, either directly or via public health systems like the NHS.

The Strait of Hormuz, a vital waterway connecting the Persian Gulf to the Gulf of Oman, has long been recognized as a critical oil chokepoint. However, its significance extends far beyond its role in the global energy market. Strategically located between Iran and Oman, the strait is a key passage for international trade, with a substantial portion of the world's oil exports passing through it. Any disruption in this waterway could have far-reaching consequences for the global economy. Beyond its economic importance, the Strait of Hormuz holds considerable geopolitical significance. The region has been a focal point for tensions between major powers, with Iran's presence and influence in the area contributing to the complex dynamics. The strait's importance is further underscored by its role in regional power struggles and its potential impact on global security. As such, the Strait of Hormuz remains a critical area of focus for international observers and policymakers.

Malaysian Prime Minister Anwar Ibrahim revealed in a televised address that Iran's President Masoud Pezeshkian has allowed Malaysian vessels to pass through the Strait of Hormuz with 'early clearance'. This development comes as the global energy market faces significant disruptions due to the ongoing conflict between Iran, the United States, and Israel.Anwar expressed gratitude to Pezeshkian for the clearance, which will enable Malaysian oil tankers and their crews to continue their journey home. While he did not specify the number of vessels cleared or the conditions for safe passage, he emphasized that Malaysia is working to secure the release of its ships and personnel.The Strait of Hormuz is a vital waterway, facilitating about one-fifth of global oil and liquefied natural gas (LNG) supplies. Iran has claimed the right to control the strait and has been responsible for several attacks on commercial vessels in the region. Despite Iran's assertion that the strait is open to non-aligned ships, there have been reports of Iranian authorities demanding tolls of up to $2 million for safe passage.Malaysia, a net energy exporter and one of the world's top LNG suppliers, imports nearly 70% of its crude oil from the Gulf region. Anwar noted that while Malaysia is better positioned than other nations due to its state-run oil and gas company Petronas, the country will still face impacts from the energy supply disruptions. To mitigate these effects, the government plans to implement fuel conservation measures, including reducing subsidized petrol quotas and encouraging civil servants to work from home.Anwar warned that food, fertilizer, and oil prices are likely to rise due to the disruptions. He emphasized that Malaysia is taking steps to address these challenges, adding that some countries are experiencing far worse impacts than Malaysia.

The ongoing United States-Israeli conflict with Iran has triggered severe disruptions to global LNG supplies in the Gulf, creating the most significant energy market disruptions in recent years. The critical Strait of Hormuz, through which 27 percent of the world's maritime oil trade and 20 percent of LNG shipments pass, has been brought to a near standstill.In response to the conflict, oil-producing nations such as Saudi Arabia have rerouted oil through alternative pipelines, while Qatar has completely halted LNG production at its Ras Laffan and Mesaieed facilities following attacks on its energy infrastructure. This disruption comes as natural gas makes up about a quarter of global energy consumption, raising widespread concerns about the impact on nations heavily reliant on gas imports.Natural gas is formed over millions of years from decomposed organic matter subjected to intense heat and pressure beneath the Earth's surface. LNG represents natural gas that has been cooled to -162 degrees Celsius through cryogenic processing, shrinking it to a 600th of its gaseous volume. In its liquid state, LNG is colorless, odorless, and non-flammable, making it safe and efficient to transport across vast distances.Before liquefaction, the gas undergoes purification through water-based solvents and molecular sieve beds to remove impurities including carbon dioxide, hydrogen sulfide, water, and mercury. Heavier hydrocarbons are then separated from methane and ethane through fractionation. The resulting fuel is typically composed of 85 to 95 percent methane, with small amounts of ethane, propane, butane, and nitrogen.LNG is stored in large insulated tanks without requiring high-pressure infrastructure, then pumped onto double-hulled carriers for shipment to terminals worldwide. At destination facilities, LNG is heated using seawater or warm water baths until it vaporizes—a process known as regasification—before being distributed through pipelines for consumption.Once returned to a gaseous state, LNG serves multiple purposes globally. Residential applications include cooking, heating, and electricity generation, while supporting hot water systems in homes and heating for commercial buildings. In power generation, LNG offers a comparatively low-carbon alternative to coal and oil. Industrial applications span fertilizers, plastics, paints, and medicines, with LNG also used to fuel heavy-duty vehicles and ships.The disruption has particularly affected agricultural production, as Gulf nations export close to half the world's traded urea—a key fertilizer component. Natural gas serves as both the primary feedstock and fuel for fertilizer manufacturing, with the halt in production forcing producers across the region to suspend or reduce operations.While primarily valued as an energy source, LNG processing yields significant by-products with industrial and medical applications. The most notable is helium, extracted during cryogenic processing. With global helium production estimated at 180 million cubic meters annually, the disruption to Qatar's LNG facilities has removed approximately 5.2 million cubic meters from the market each month—accounting for about a third of global monthly production.Helium is critical for cooling superconducting magnets in MRI and CT scanners, with the average MRI machine requiring about 1,700 liters of liquid helium. The element is also vital to the data center industry, where it conducts heat away from silicon components, preventing damage to semiconductors. Additionally, the natural gas value chain generates petrochemical derivatives that serve as feedstock for manufactured goods, including medical-grade plastics.According to the International Gas Union's 2025 World LNG Report, 411.24 million tonnes of LNG were traded in 2024. The United States emerged as the largest exporter with 88.4 million tonnes, followed by Australia (81 million tonnes), Qatar (77.2 million tonnes), Russia (33.5 million tonnes), and Malaysia (27.7 million tonnes). Together, these top five suppliers account for more than three-quarters of global LNG supply.China was the largest importer with 78.6 million tonnes in 2024, followed by Japan (67.7 million tonnes), South Korea (47.1 million tonnes), India (26.1 million tonnes), and Taiwan (21.8 million tonnes). These top five importers constituted nearly 59 percent of all global LNG imports that year.South Asian nations face particularly severe risks from the current conflict. Pakistan, where natural gas accounts for 28 percent of electricity generation for its 250 million people, and Bangladesh, where gas supplies half of all electricity for its 176 million population, are heavily dependent on Gulf imports. Qatar and the United Arab Emirates supply approximately 99 percent of Pakistan's LNG imports and 72 percent of Bangladesh's.In response to the energy crisis, Pakistan has implemented emergency measures including a four-day workweek for government employees and extended school holidays. Bangladesh has reduced gas supplies and is seeking nearly $2 billion in international loans to fund energy inputs and maintain price stability. India, which relies on Gulf nations for about half of its LNG and generates 5 percent of its electricity from gas, has shifted toward coal usage as LNG disruptions continue.