A severe geopolitical crisis in the Middle East has disrupted global energy supply routes, threatening the stability of international trade. The conflict centers on control of the Strait of Hormuz, through which about 20 percent of the world’s oil and liquefied natural gas (LNG) pass daily. Following U.S. military operations to secure the route, Iran closed the strait, halting energy shipments and triggering fears of a worldwide supply chain breakdown.

The report notes that Iran’s allies, including groups in Yemen, Lebanon, and Palestine, could block other key maritime routes such as the Bab al-Mandeb Strait, the Karish gas field, and the Suez Canal, which handles 10 percent of global oil trade. Attacks on tanker terminals and pipelines have already disrupted fuel transport, increased shipping costs, and threatened deliveries of essential goods and medicines.

The crisis has pushed oil prices toward a possible $200 per barrel, raising global inflation risks. Economists warn that if world leaders fail to contain the conflict, a full-scale global economic downturn could soon follow.