Situation in Iran worsens, energy infrastructure under attack
March 9, 2026
The Iran situation continues to get worse and some of the things that have happened are worse than I ever thought so this is a surprise and prices have traded higher again as the uncertainty grows as this war continues. The Iran situation is front and center and it continues to push prices to new highs. The situation in the Strait of Hormuz has not changed and technically all traffic is shut down and that also support prices. Until something positive happens to end this war or change the outlook prices are supported. If prices continue to rise at a point in time, it will impact demand and that could bring prices down. We are already getting some indications of this as Saudi Aramco has begun to cut its output at two oilfields. There are other reports that the market is seeing that says the UAE, Kuwait, and Iraq have all done the same thing.
Israel has attacked an Iranian oil depot over the weekend and that was the big new that has spiked oil price gain. Energy infrastructure is getting attacked and that is new news as many saw this as off limits. Now there is talk that an attack on Kharg Island is possible. Kharg Island is currently still loading, and it is Iran lifeline loading roughly 2 million barrels per day of crude oil.
The G7 finance ministers, along with the head of the International Energy Agency are holding an emergency meeting today to discuss a coordinated released of oil from the strategic stockpiles in response to the sharp price rally cause by ongoing Middle East war and Iran’s closure of the Strait of Hormuz.