The war involving Iran, Israel, and the United States continues to intensify across multiple fronts, raising concerns about energy supply disruptions and broader economic consequences. The conflict, which began on February 28, has already triggered sharp movements in global oil prices and heightened fears of instability across the Gulf and the wider Middle East.
One of the central developments affecting global markets is the disruption of maritime traffic through the Strait of Hormuz. The strategic waterway normally carries roughly one-fifth of the world’s oil and liquefied natural gas exports. Iranian actions in the area have effectively halted or severely restricted traffic, contributing to rising energy prices and supply uncertainty.
Iran has also targeted energy infrastructure across the region. A drone strike forced the shutdown of the Ruwais refinery in the United Arab Emirates, one of the largest refining facilities in the world. The attack shows how vulnerable Gulf energy installations are to missile and drone operations as the conflict spreads beyond direct military engagements.
Military exchanges between Iran and U.S. and Israeli forces have intensified as well. Iranian Revolutionary Guard units claimed responsibility for a series of missile and drone strikes across the region, including attacks directed toward U.S. military facilities. Iranian officials have indicated that their operations are intended as retaliation for the initial military campaign launched by Washington and Israel.
The escalation has prompted warnings from Washington that any Iranian attempt to mine or permanently block the Strait of Hormuz would trigger a severe military response. The strait is considered one of the most critical chokepoints in the global energy system, and prolonged disruption could have major implications for oil and gas supply.
Several Gulf states have also reported attempted strikes on strategic assets. Saudi authorities said their air defenses intercepted drones targeting the Shaybah oil field near the border with the United Arab Emirates, as well as missiles aimed at Prince Sultan Air Base near Riyadh, which hosts U.S. personnel.
At the diplomatic level, leaders of the Group of Seven major industrialized economies are scheduled to hold an emergency video conference today (March 11, 2026) to assess the economic consequences of the conflict. Discussions are expected to focus heavily on energy markets and measures to mitigate supply disruptions.
According to reports in the United States, the participating countries are considering releasing large volumes of strategic petroleum reserves. The scale of the release could exceed the coordinated reserve drawdown implemented after Russia’s invasion of Ukraine in 2022.
Meanwhile, the conflict has expanded beyond the Gulf region. Israel has continued strikes against Iranian targets and against Hezbollah positions in Lebanon. In response, missiles have been launched from Iranian territory toward Israel, including strikes reported near Tel Aviv that caused injuries.
Fighting involving Hezbollah has also intensified along Israel’s northern frontier and in parts of Lebanon. Lebanese authorities say that large numbers of civilians have been displaced since the beginning of the clashes earlier in March, with hundreds of thousands of people forced to leave their homes.
As the conflict continues, the combination of military escalation and disruptions to energy infrastructure has increased concerns among governments and financial markets about the possibility of a broader regional confrontation and prolonged instability in global energy supply.
