The joint military strikes by the United States and Israel have intensified the crisis in the Middle East. According to White House chief economic advisor Kevin Hassett, the U.S. has spent approximately $12 billion on the war against Iran so far. In the first week alone, over $5 billion was spent solely on ammunition. Hassett added that the American economy would not face serious repercussions, as the U.S. has now become a major oil producer.
Destruction in Iran
Missile and drone attacks in Tehran have destroyed numerous residential and civilian structures. Images show a woman sifting through the rubble of her home. So far, at least 1,444 Iranian civilians and 13 U.S. soldiers have been killed.
Stranglehold on the Strait of Hormuz
Iran has effectively closed the Strait of Hormuz. Around 1,000 ships are stranded, including 20 oil tankers. This waterway handles approximately 20% of the world’s maritime oil transport.
Oil Prices Spike
Due to the blockage in Hormuz and heightened war risks, oil prices surged to $102–$103 per barrel, marking the highest level since 2022.
Impact on Oil and Gas Production
International oil companies have halted production. Companies like Qatar Energy, Kuwait Petroleum, and Bapco have declared force majeure. Meanwhile, Saudi Aramco and UAE’s ADNOC have temporarily shut down refineries.
Global Energy Market Under Pressure
The International Energy Agency (IEA) released 400 million barrels of oil from its emergency reserves. However, experts warn that this will provide only temporary relief.
International Response
Countries like India are now engaging directly with Iran to ensure the safe passage of their oil tankers. U.S. officials indicate that the military objective has shifted to targeting Iran’s missile capabilities and oil transport infrastructure.
The U.S.-led $12 billion strikes on Iran have destabilized both the Middle East and the global oil market. With the Strait of Hormuz blocked, oil prices exceeding $100, and thousands of ships waiting, the escalating conflict poses serious risks to global energy security and economic stability.
