March 23, 2026
Fatih Birol, executive director of the International Energy Agency (IEA), warned Monday that the US-Israel war on Iran and Tehran’s closure of the Strait of Hormuz pose a “major, major threat” to the global economy. Speaking to Australia’s National Press Club, Birol said the crisis combines elements of the 1970s oil shocks and the fallout from the war in Ukraine, calling the situation “two oil crises and one gas crash put all together.” He said the single most important solution is reopening the Strait of Hormuz and urged global efforts to resolve the crisis quickly.
Markets reacted sharply as the conflict continued into its fourth week. Major Asian markets fell more than 3% in a single day, and European indices opened lower, with Germany’s DAX down over 2% by lunchtime. Safe-haven assets including gold and silver were volatile. Traders returned from the weekend in a dour mood amid reciprocal threats between the US and Iran and little sign of de-escalation.
Singapore Foreign Minister Vivian Balakrishnan said the conflict has “taken the entire global economy hostage,” warning it could trigger a financial crisis and describing the closure of the Strait of Hormuz as “in a sense, an Asian crisis.” He expressed surprise at hostilities and doubts about the legality of some actions.
Diplomatic responses were mixed. Russia’s Kremlin called for a “political and diplomatic” end to hostilities, saying only diplomacy can defuse the catastrophic tensions. China warned the situation risks becoming “uncontrollable” if the war expands; Beijing, reliant on Iranian oil, has repeated calls for a ceasefire and sent a special envoy to seek de‑escalation. UK Prime Minister Keir Starmer and US President Donald Trump held a late‑week call agreeing reopening the waterway is essential, with further discussions expected.
On the military front, Israel said it launched a “wide‑scale wave of strikes targeting Iranian terror regime infrastructure in Tehran” early Monday, with explosions reported across the Iranian capital. Iran reported Iranian missiles and drones fired toward Israel; the Israel Defense Forces said defensive systems were intercepting incoming threats and advised civilians to take shelter. Israel also reported an Israeli civilian in a northern kibbutz had been killed by friendly fire during an operation, and an inquiry has been launched.
US Central Command chief Admiral Brad Cooper told the Farsi network Iran International that the US campaign against Iran is “largely ahead or on plan.” He accused Iran of launching missiles and drones from populated areas and suggested those areas would be targeted, urging civilians there to stay indoors.
Tehran has issued stark reciprocal threats. Iran’s Defense Council warned it would mine “all access routes in the Gulf” — including floating mines released from the coast — if its coasts or islands are attacked, effectively closing the Persian Gulf for a prolonged period. Tehran also threatened to strike power plants across Israel and Gulf states if US strikes hit Iranian power stations. Iranian state media warned such attacks would endanger regional energy and water supplies, noting desalination depends on electricity from power plants.
The US president issued a stark ultimatum over the weekend, threatening to “obliterate” Iran’s energy infrastructure if Tehran did not reopen the Strait of Hormuz within 48 hours; that deadline was due to expire late Monday. US reports said President Trump was considering occupying or blockading Kharg Island, Iran’s main oil export hub, to pressure reopening the strait.
Iran is deploying swarms of drones in the conflict and has used them to strike neighboring Gulf states, presenting difficult challenges for defenses. The increasing use of drones, missile exchanges, threats to energy infrastructure and potential mining of Gulf waterways have raised fears of prolonged disruption to global oil and gas supplies and broader economic fallout.
Coverage continues as leaders and envoys press for solutions while markets and regional populations contend with the immediate human, infrastructural and economic consequences of an expanding regional war.