Global Energy Crisis Deepens Amid Strait of Hormuz Closure

HOUSTON, March 24 - The global energy crisis is deepening. Iran’s effective closure of the Strait of Hormuz has removed up to 20 million barrels per day-nearly one-fifth of global oil and gas supply-from world markets.

United Airlines warned it may raise fares up to 20%. The Philippines declared a national energy emergency. Asia, most dependent on Middle East supplies, faces acute shortages-and Europe expects impacts by April.

Governments have released a record 400 million barrels from strategic reserves. The U.S. waived sanctions on select Iranian and Russian oil to ease refinery shortages.

But Kuwait Petroleum Corp CEO Sheikh Nawaf Al-Sabah called these measures "not even a drop in the proverbial barrel." Kuwait cut production from 2.6 million barrels per day and halted deliveries to some refiners.

Saudi Arabia and the UAE are routing limited exports via pipelines bypassing the Strait-but volumes fall far short.

Japan is contributing 80 million barrels to the IEA-coordinated release. Its gas reserves hold just three weeks of supply.

Shell CEO Wael Sawan said the world is stuck in reaction mode. "The best energy strategies look five, 10 years out," he stressed.

U.S. oil output cannot meaningfully increase before 2027, ConocoPhillips CEO Ryan Lance said. U.S. LNG producers-including NextDecade-are already at maximum capacity, NextDecade CEO Matt Schatzman confirmed.