Hormuz Crisis Triggers Oil Surge and Global Economic Alarm

LONDON — The Middle East crisis entered a more dangerous phase on Tuesday, April 7, 2026, after the United States intensified its ultimatum to Iran over the Strait of Hormuz, while retaliatory strikes targeted strategic Gulf energy facilities, sending global oil prices sharply higher and raising fears of a worldwide economic slowdown.

According to Reuters, Iran said it launched missile and drone strikes on the Jubail petrochemical complex in Saudi Arabia in retaliation for earlier explosions at its Asaluyeh gas facilities. The escalation has deepened the U.S.–Israel–Iran confrontation and immediately rattled global energy markets.

U.S. President Donald Trump renewed pressure on Tehran to reopen the Strait of Hormuz, one of the world’s most critical energy chokepoints through which nearly 20% of global oil flows. The warning came as Washington signaled that further consequences could follow if maritime traffic remains blocked.

The market reaction was immediate. Physical crude prices surged close to US$150 per barrel, while Brent futures traded above US$110, reflecting what traders described as “panic buying” for immediate supply. Reuters reported that refiners in Europe and Asia are scrambling for alternative cargoes as Gulf exports continue to face severe disruption.

The U.S. Energy Information Administration (EIA) said in its latest outlook that Brent is expected to peak around US$115 per barrel in the second quarter, while retail fuel prices may remain elevated for months even if shipping lanes gradually reopen. The agency noted that full restoration of normal flows could take until late 2026.

The International Energy Agency (IEA) delivered an even sharper warning. Executive Director Fatih Birol said the current oil and gas shock is “worse than the crises of 1973, 1979, and 2022 combined,” stressing that developing economies will suffer the most through rising fuel, food, and transport costs.

Financial markets across Asia and Europe fell amid the uncertainty, while investors shifted toward safe-haven assets. The IMF and World Bank are scheduled to hold emergency talks with the IEA next week to coordinate policy responses and financial support for vulnerable countries.

Diplomatically, the U.N. Security Council is expected to review new proposals aimed at restoring freedom of navigation through the strait, while Gulf states have raised military alert levels around key export terminals.

Analysts warn the Hormuz crisis is no longer a regional conflict alone, but a direct threat to inflation, logistics, food prices, and global economic stability. If the disruption continues, Asian economies — including Indonesia — could soon face higher fuel import costs and mounting inflationary pressure.