This is Very Bad - Joe Blogs

Energy markets are entering dangerous territory.

Oil prices have surged above $100 per barrel as the war in Iran approaches the two-week mark. At the same time, natural gas prices have jumped by more than 30% and companies across the global energy sector are now declaring force majeure, signaling severe disruption to oil and LNG supplies.

Shipping through the Strait of Hormuz remains heavily affected, LNG exports are being disrupted, and energy companies are increasingly unable to fulfil supply contracts.

In a remarkable development, the United States has also issued a temporary license allowing countries to purchase Russian oil that had previously been stranded at sea due to sanctions. The waiver could allow around 100 million barrels of Russian oil worth roughly $10 billion to reach the market.

The economic impact is already spreading beyond energy.

Airlines are cancelling flights and diverting aircraft as Middle East airspace becomes increasingly dangerous, fuel costs are soaring, and tourism across major Gulf hubs such as Dubai, Abu Dhabi and Doha is being hit hard.

With oil surging, gas prices rising and force majeure declarations spreading across the energy industry, the risk of a major global economic shock is increasing.