Analysts Are Warning that the World Could Be Heading Toward a Major Energy Crisis

FomoAnxiety · 2026-03-09T19:52:18+00:00

Oil prices have surged due to escalating Middle East conflict, with Brent crude exceeding $119 per barrel. Analysts warn of a potential energy crisis if the Strait of Hormuz remains blocked, exacerbated by production cuts from Iraq and Kuwait.

FomoAnxiety

2026-03-09 19:52:18

Abstract generation in progress

Oil prices have surged sharply in the past week as the conflict in the Middle East intensifies. As a result, analysts are warning that the world could be heading toward a major energy crisis. On Monday, crude prices jumped after new U.S. and Israeli strikes targeted Iran over the weekend, including oil storage facilities. This caused the global benchmark Brent crude to briefly climb above $119 per barrel before pulling back, while U.S. West Texas Intermediate (CM:CL) also spiked above $119 at one point. However, U.S oil has since dropped to roughly $94 per barrel.

Claim 70% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Another major driver of the spike is the near-shutdown of the Strait of Hormuz, which is one of the most important shipping routes for global energy. Normally, roughly 20% of the world’s oil and gas passes through this narrow waterway, but shipping activity has nearly stopped since the conflict began. Neil Atkinson, a former oil market chief at the International Energy Agency, warned that if the closure continues, the world could face a “game-changing and unprecedented” energy crisis as global oil supplies tighten and emergency reserves begin to run down.

To make things worse, Iraq and Kuwait have already begun reducing production, while analysts say that the United Arab Emirates and Saudi Arabia could also be forced to follow if the shipping route remains blocked. Therefore, finance ministers from the G7 countries are preparing an emergency meeting in order to discuss releasing oil from strategic reserves. Still, some analysts estimate that oil prices could rise above $110 per barrel in the coming months, and in a worst-case scenario, could reach as high as $135 if the disruption lasts several months.

Is U.S. Oil a Buy?

Using TipRanks’ technical analysis tool, the indicators seem to point to a bullish outlook for U.S. crude oil. Indeed, the summary section pictured below shows that 15 indicators are Bullish, compared to one Neutral and six Bearish indicators.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.