The World Is Draining Oil Reserves, Raising Pressure for a Peace Deal
The amount of oil and fuel stored by businesses and governments has fallen sharply since the start of the U.S.-Israeli war against Iran.
The amount of oil and fuel stored by businesses and governments has fallen sharply since the start of the U.S.-Israeli war against Iran.
The Iran war is pushing countries to prioritize domestic energy in order to protect themselves from volatile oil and natural gas markets.
Some analysts said the main international oil price, which was up 6 percent on Monday, could climb much higher in the coming weeks if the Strait of Hormuz doesn’t reopen.
While the defense industry has announced plans to make more munitions, much of that expanded production will not quickly kick in.
The Pentagon’s rush to rearm its Mideast forces makes it less ready to confront potential adversaries like Russia and China, administration and congressional officials say.
Defense systems that shoot projectiles out of the sky have become one of the most important components of warfare, so much so that militaries face a diminishing supply.
The Trump administration said the Middle East would “recede” in importance as the China challenge took priority. But the president started the war in Iran.
The trade organization said that a slowdown in trade in 2026 could become even more extreme if the war in the Middle East persists.
Finance ministers for the seven industrialized countries met on Monday and said they would consider releasing oil from reserves but were not ready to do so now.
The Pentagon and Middle Eastern countries say that most of the drones have been intercepted. But some have slipped through and caused damage.