Iran conflict disrupts global energy markets and shipping

A conflict involving Iran has caused significant disruptions in global energy markets and shipping. Oil prices have been volatile, and QatarEnergy, a major liquefied natural gas supplier, declared force majeure on some of its contracts, meaning it cannot fulfill them due to events beyond its control. The situation has also raised fears of an oil supply shock, impacting Asian stock markets.

In response to the crisis, Iran has stated that non-hostile ships can still cross the Strait of Hormuz, a critical oil shipping lane, but only on its terms. This has heightened concerns about the security of energy shipments through the region. Companies are reacting to the instability, with Investec temporarily relocating staff from its Dubai office.

The conflict has also affected specific industries, with Japanese ethylene makers scrambling to adjust their production schedules to avoid a potential crunch in May. Meanwhile, the volatility in traditional fuel markets is seen as potentially giving a long-term boost to electric vehicles, as uncertainty around oil supplies grows.