A tanker waits off the coast of Dubai until it can finally move on.Image: keystone
Iran’s closure of the Strait of Hormuz has shaken the oil and gas market. Almost a quarter of the world’s oil and gas production is transported through the strait. Asia is particularly affected.
March 3, 2026, 4:16 p.mMarch 3, 2026, 4:16 p.m
The military escalation in the Middle East has hit one of the world’s most important energy routes. In response to the American and Israeli attacks, Iran has closed the Strait of Hormuz and threatened to shoot at any ship that tries to pass.
Almost a quarter of the world’s oil production is transported every day through the strait between the Persian Gulf and the Arabian Sea, which is only 38 kilometers wide at its narrowest point. Around 20 million barrels of oil travel this route every day on around 30 to 40 large tankers.
Minimal vessel traffic seen in Strait of Hormuz amid reported closure
The latest #MarineTraffic playback shows visibly reduced transit density, alongside holding patterns, slower speeds, and vessels remaining outside the strait as operators reassess risk. pic.twitter.com/pfqk5rcbg8
— MarineTraffic (@MarineTraffic) March 3, 2026
In addition, 20 percent of global supplies of liquefied natural gas (LNG) pass through the Strait of Hormuz. Almost all of it comes from Qatar, which is the second largest LNG exporter in the world next to the USA. However, due to Iranian drone attacks, the state-owned manufacturer QatarEnergy has had to stop production since the beginning of the week, which further aggravates the situation. Europe has significantly increased its LNG imports from the Gulf region in recent years in order to replace Russian gas.
As a result of the outbreak of war, oil and gas prices rose sharply at the beginning of the week. After a sharp increase on Monday, prices rose again by around three percent on Tuesday morning. The price for a barrel (159 liters) of the North Sea Brent variety has now risen to $82.05, 9.8 percent higher than the previous week. Analysts at the energy price information service ICIS believe that the price could even rise above the $100 mark in the coming weeks.
The price increase for natural gas was even more extreme. Since the beginning of the week, European natural gas has now increased in price by more than 80 percent. The last time the gas price rose even more was at the start of Russia’s war of aggression against Ukraine four years ago. At that time, prices on the Amsterdam stock exchange had temporarily risen to over 300 euros per MWh. In addition, European gas storage facilities are currently more poorly filled than they have been since 2022.
However, due to long-term procurement strategies, gas suppliers do not immediately or fully pass on rising stock market prices to end customers. This protects consumers from extreme price jumps.
Switzerland only indirectly affected
Gas does not play a central, but certainly important, role in Switzerland’s energy supply. According to the Federal Office for National Economic Supply BWL, natural gas covers around 15 percent of Switzerland’s energy needs. In this country it is used primarily for heating and cooking – around 300,000 private households heat with gas – as well as in industry and commerce.
The situation is different in many other European and Asian countries. In Germany, natural gas covers more than a quarter of primary energy consumption, and in Great Britain as much as 38 percent. Although these countries do not purchase significant amounts of LNG directly from the Gulf region, they are still indirectly dependent on it.
The situation is even more precarious for the Asian countries, as 85 percent of oil and LNG deliveries through the Strait of Hormuz go to the Far East. They are currently desperately looking for new suppliers and are driving up the price.
Experts agree that the development of oil and gas prices and their impact on the economy depend primarily on how long the war in the Middle East will last. Noticeable consequences for the economy are to be expected, especially if the conflict lasts longer.
The EU is already preparing for possible emergencies as a result of the Iran war. As Ursula von der Leyen’s EU Commission announced after a special meeting in Brussels on Monday, an energy crisis team with the member states will be convened as a result of the developments. Reactions to the rapidly rising oil, fuel and gas prices should be planned.