Iran War Puts Global Energy Markets on the Brink of a Worst-Case Scenario

The war in Iran reached a new extreme this week, as both Israel and Iran launched strikes on oil and gas production and export facilities. The attacks up the stakes in a war that was already choking energy and commodity markets, and will threaten the long-term health of the global economy. On Friday, the International Energy Agency recommended that people work from home, drive slowly, and use gas stoves sparingly in order to alleviate price shocks from the crisis.

The situation in the Gulf is so extreme, analysts told WIRED, that it’s almost unbelievable.

“This scenario is something that you give to the first year-oil analysts to say, ‘Okay, if this happens...’ It’s a really interesting illustrative educational thought experiment,” says Rory Johnston, a Canadian oil market researcher. “It’s kind of like, what would happen if gravity just suddenly stopped working for 10 minutes? The things you ...