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Iran War’s Energy Impact Forces World to Pay Up, Cut Consumption

Prices are seen at a gas station on Capitol Hill amid the US-Israeli war with Iran, in Washington, D.C., US, March 19, 2026. Photo: REUTERS/Nathan Howard

The war in the Middle East has triggered a nightmare scenario for the global energy system, slashing so much supply that consumers around the world must both pay up big and lower consumption.

The effective closure of the Strait of Hormuz, a narrow channel along the Iranian coast, has stopped the passage of 20 percent of the world’s oil and liquefied natural gas since the US and Israel began airstrikes on Iran on February 28.

Meanwhile, ongoing strikes by Iran and Israel have targeted Middle East energy infrastructure, doing damage to gas fields, oil refineries, and terminals that industry representatives say will take years to repair.

All of that adds up to what the International Energy Agency has already called the worst global energy disruption in history, eclipsing even the Arab oil embargo of 1973 that caused fuel shortages and triggered widespread economic damage.

“You’re not going to conserve your way around this. What it’s going to translate to is price rises high enough that people stop consuming,” said Dan Pickering, chief investment officer for Pickering Energy Partners.

So far, the crisis has removed about 400 million barrels – about four days of world supply – from the market, triggering price increases of around 50 percent.

Oil, gas, and their refined byproducts are critical to many parts of the modern world, from fueling cars, trucks and planes, to powering homes and industry, to producing plastics and fertilizers.

“The breadth of what is at risk here in fuels, chemicals, LNG and fertilizer inputs is what makes this moment qualitatively different from previous episodes of Gulf tension,” said Aditya Saraswat, senior vice president at consultancy Rystad Energy.

Energy price shocks also fuel inflation, hitting consumers and businesses hard. This has become a major political liability for US President Donald Trump as he seeks to justify the war to the American public.

Trump has assailed NATO allies over their lack of support for ​the US-Israeli war against Iran, calling the longtime US allies “cowards.”

PRICE SHOCK

Global benchmark oil prices have already risen more than 50% to over $110 a barrel since the war started. The impacts are more pronounced for Middle East crudes – a staple for Asian economies – with prices hitting records near $164.

That has translated to soaring prices for transport fuels, pressuring consumers and businesses across the globe, and triggering government action to conserve supplies.

Thailand, for example, ordered civil servants to conserve energy by suspending overseas trips and using stairs instead of elevators, while Bangladesh closed its universities.

Sri Lanka has imposed fuel rationing, China has banned refined fuel exports, and the UK government’s energy contingency plan includes a cut in speed limits to save fuel.

On Friday, the International Energy Agency outlined other proposals to reduce demand, such as working from home and avoiding air travel, which has already been severely disrupted after the war forced the closure of key Middle Eastern hubs.

The IEA earlier this month agreed to make a record 400 million barrels of oil available from emergency stockpiles. But analysts say the measure is too small since 400 million barrels covers only about 20 days of the war’s impact.

Natasha Kaneva, a JP Morgan analyst, said reducing demand is the only solution when supplies fall short.

“The market is facing an acute shortage of products (…) that cannot be consumed simply because they are not available,” she said.

For everything that remains, prices are surging.

Jet fuel prices in Europe, for example, hit a record of around $220 per barrel – a cost that is likely to filter down fast in the form of more expensive airline tickets. In the US, which imports very little Middle Eastern oil, retail gasoline prices are up more than a dollar a gallon since February 28 to around $4 a gallon.

Natural gas prices in Europe and Asia are soaring after tit-for-tat strikes by Israel and Iran in recent days slammed Gulf gas installations. Consumer power costs could also leap.

Israel struck Iran’s South Pars gas field on Wednesday, and Iran hit Qatar’s massive Ras Laffan LNG complex the day after. QatarEnergy’s CEO Saad al-Kaabi told Reuters Iranian attacks will knock out 12.8 million tons per year of LNG – about 3 percent of world supply – for three to five years.

The situation is critical since oil and gas products are vital to everything from pharmaceuticals to plastics and fertilizers, said Menelaos Ydreos, secretary general of the International Gas Union, a grouping of world gas producers.

“We, again, call for an immediate stop to the targeting of energy facilities and for the resumption of cargo traffic through the Strait of Hormuz as fertilizers, petrochemicals for the pharmaceutical industry, oil, grain, and gas are all critical to our existence,” he said in a statement.

FOOD THREAT

The war also threatens food supply. It has severely disrupted fertilizer markets because about a third of global trade in fertilizers typically passes through the Strait of Hormuz and is now stuck.

Prices for nitrogen-based products like urea, the most critical fertilizer product, have risen 30 percent to 40 percent since the conflict began. US farmers were already reporting empty shop shelves ahead of spring planting.

Fertilizer factories in India, Bangladesh and Malaysia are moving to halt orders, cut production or shut down altogether because of a lack of feedstocks.

If the conflict lasts just a few more weeks, global food supplies will be significantly disrupted, said Maximo Torero, chief economist with the UN’s Food and Agriculture Organization (FAO).

“This will affect planting… There will be a lower supply of commodities in the world – of staple cereals, of feed, and therefore of dairy and meat,” he said.

About half the world’s food is grown using fertilizers, which in some countries account for up to half the cost of grain production.

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Hungary is poised to topple an authoritarian leader. American Jews have something to learn

An aspiring authoritarian, who has spent more than a decade shaping his country through a political project of popularist grievance and personal enrichment, may soon meet his electoral end.

That elected leader is not President Donald Trump, but Hungarian Prime Minister Viktor Orbán, who has ruled Hungary consecutively since 2010 (and who previously served as prime minister between 1998 and 2002). Hungarians will go to the polls on April 12, and Orbán’s Fidesz party is polling well behind the conservative, pro-European Tisza. That Trump, who is closely allied with Orbán, this week dispatched Vice President JD Vance to Budapest to campaign for Orbán may not be enough. (While there, Vance baselessly claimed EU interference in Hungary’s elections, turning back to the same old Trump playbook.)

There is much that Americans can learn from the Hungarian experience of years spent under the governance of someone accused of dismantling rule of law, a person whose inner circle has grown rich during his time in office. But American Jews in particular should pay attention. Because Orbán’s administration has used antisemitism as a political tool throughout his time in power, and is desperately turning to this hatred once again on its way, possibly, out the electoral door.

Examining the different purposes for which Orbán has employed antisemitism is instructive. The essential lesson: Antisemitism deployed by powerful people is often an attempt to evade accountability for their own bad actions.

The Orbán administration has tried to rewrite history so as to paint Hungary as a perpetual victim or victor — never a country responsible for misdeeds like, say, allying with Nazi Germany prior to being occupied by it. Orbán, like other politicians interested in historical revisionism, has tried to make adherence to his specific retelling of Hungarian history synonymous with being a true Hungarian. Anyone who challenges his vision is, in it, an enemy of the state.

For no one has that been more true than Hungarian-born Jewish billionaire philanthropist George Soros. In past elections, Orbán has inflated Soros to the status of a political adversary, campaigning against a spectral version of him instead of his actual political opponents. This approach, rife with antisemitic dog whistles, has been alarmingly effective.

“We are fighting an enemy that is different from us. Not open, but hiding; not straightforward but crafty; not honest but base; not national but international; does not believe in working but speculates with money; does not have its own homeland but feels it owns the whole world,” he said of Soros in the 2018 campaign, invoking any number of longstanding antisemitic tropes.

When Orbán’s authoritarian efforts extended to cracking down on liberal institutions and civil society, he turned again to antisemitism in the form of Soros conspiracy theories.

Under attack by Orbán, Central European University, the university that Soros founded, has mostly been pushed out of its original home of Budapest. When the Hungarian government passed legislation to criminalize helping those who wanted to claim asylum in the country, it was called “Stop Soros” legislation. NGOs in Hungary have long been smeared for receiving money from Soros’ Open Society Foundations, accused of being proxies through which Soros is “targeting” Hungary.

Recently, Orbán has pivoted, making Ukrainian President Volodymyr Zelenskyy the new scapegoat of his antisemitic conspiracy theories.

He has charged that support for Ukraine is expensive and even dangerous, and pushed the idea that Orbán and Fidesz are all that prevents such support from leading Hungary to disaster. Orbán and Fidesz have erected billboards showing Zelenskyy smirking with an outstretched hand, in a pose reminiscent of the antisemitic “happy merchant” meme. Perhaps most tellingly and menacingly, Fidesz has put up posters with Zelenskyy’s face, blazoned with nearly the same words that, almost a decade ago, accompanied campaign posters with Soros’s visage on them: “Let’s not let Zelenskyy have the last laugh.”

As Hungarians are asking what, exactly, the last decade and a half of autocracy have accomplished for them, their governing party appears to be suggesting that it is the only thing standing between them and the machinations of a nefarious Jew. Antisemitism can be many things, but in Hungary, again and again, it has been an attempt to trick citizens out of asking what good Orbán’s government has done for them.

This playbook has clear resonances in that deployed by Trump.

When threatened, Trump and his allies repeatedly turn to blaming Soros. They have used the idea of Soros as a sort of universal bogeyman to try to explain away Trump’s felony charges and to justify violence against citizens protesting ICE. The Department of Justice has tried to find ways to push for prosecutions of Soros and his allies, on far-fetched charges possibly including material support of terrorism.

What Orbán and Trump have both bet on is that dog whistling about all-powerful Jews will distract enough voters from noticing while they help themselves to their country’s rights and riches. If Orbán is defeated on Sunday, his loss will send an essential message to Americans: that strategy can only sustain a leader for so long.

Flailing about and sowing the seeds of antisemitic conspiracies cannot change the stubborn fact that neither Soros nor Zelenskyy is in charge in Hungary: Orbán is. Hungarians seem to see, now, that all that talk about Soros didn’t make their lives any better. Neither will going after Zelenskyy.

We can hope Hungarians remember that as they go to the polls. We, American Jews, should remind others, and ourselves, of it here, too. We often focus on trying to communicate that antisemitism is hateful and unfair toward American Jews. Perhaps, in addition, we should try to point out that Trump’s antisemitism, like Orbán’s, is not only hateful, but a hateful deflection.

The post Hungary is poised to topple an authoritarian leader. American Jews have something to learn appeared first on The Forward.

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Israel Expels Spain From US-Backed Gaza Coordination Center as Diplomatic Rift Deepens

Spanish Prime Minister Pedro Sanchez speaks during a press conference after attending a special summit of European Union leaders to discuss transatlantic relations, in Brussels, Belgium, Jan. 23, 2026. Photo: REUTERS/Yves Herman

Israel has expelled Spain from the United States’ Civil-Military Coordination Center (CMCC) in Kiryat Gat, a hub established to coordinate humanitarian operations in the Gaza Strip, marking a sharp escalation in an already deteriorating diplomatic rift between the two countries.

On Friday, Israeli Prime Minister Benjamin Netanyahu announced Spain’s expulsion from the CMCC, framing the move as a response to Madrid’s increasingly anti-Israel stance and what he described as continued hostility toward the Jewish state.

“Spain has defamed our heroes, the soldiers of the [Israel Defense Forces], the soldiers of the most moral army in the world,” Netanyahu said during a press conference. “Anyone who attacks the State of Israel instead of the terrorist regimes … will not be our partner in the future of the region.” 

“I am not willing to tolerate this hypocrisy and this hostility,” the Israeli leader continued. “I do not intend to allow any country to wage a diplomatic war against us without paying an immediate price for it.”

In a press release, Israeli Foreign Minister Gideon Saar confirmed that the United States had been informed ahead of time, adding that the decision followed Spain’s serious harm to the interests of both Jerusalem and Washington.

The Spanish government has also been informed of the decision, though it has yet to issue any public statement or official response.

“Spain’s obsessive anti-Israel bias under [Prime Minister Pedro Sanchez]’s leadership is so egregious that it has lost all capability to serve a constructive role in implementing US President Donald Trump’s peace plan and the center operating under it,” the top Israeli diplomat wrote in a post on X. 

Established in October 2025 as part of US Central Command, the CMCC was set up to coordinate and manage the flow of humanitarian, logistical, and security assistance from the international community into Gaza under Trump’s peace plan for the enclave.

Since the start of the war in Gaza, and increasingly amid the war with Iran and broader regional escalation, Spain has launched a fierce anti-Israel campaign aimed at undermining and isolating the Jewish state on the international stage.

Earlier this week, Sánchez publicly condemned Israeli strikes in Lebanon and the widening regional escalation tied to the Iran conflict, renewing calls for the European Union to suspend its association agreement with Israel and urging an end to “impunity for [Israel’s] criminal actions.”

The Spanish leader also accused Netanyahu of breaching basic humanitarian norms, saying his “contempt for life and international law is intolerable.”

Spanish Foreign Minister José Manuel Albares has also publicly condemned Israel’s military campaign, describing the conflict as “the greatest assault on the civilization built upon the humanist ideals of reason, peace, understanding, and universal law over the abuse of power, brute force, and arbitrariness.”

In a phone call with his Spanish counterpart on Friday, Iranian Foreign Minister Abbas Araghchi praised Spain’s “principled and honorable” stance on what he called “US-Israeli aggression against Iran,” urging countries to take a firmer stand against what he described as war crimes.

“Spain’s valuable stances in defending international law and human values ​​have been noted and praised by the Iranian nation and the international community, and will never be forgotten,” the top Iranian diplomat said. 

Even though Spain welcomed the recently announced US–Iran ceasefire, Albares said, “Madrid will not applaud those who set the world on fire just because they show up with a bucket to put out that fire.”

As part of its broader anti-Israel campaign, Spain had recently closed its airspace to aircraft involved in what officials described as a “reckless and illegal confrontation” – another move welcomed by Iran’s Islamist government.

In one of its most controversial recent moves, Madrid also announced this weej the reopening of its embassy in Tehran.

According to data from Spain’s Ministry of Trade reported by Servimedia, the Spanish government exported more than €1.3 million worth of dual-use materials to Iran in 2024 and the first half of 2025, including explosive components, laboratory reagents, and specialized control software.

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DNC Fails to Pass Resolutions Condemning AIPAC, Pushing for Conditioning Aid to Israel

Crews prepare the stage at the annual AIPAC Policy Conference in Washington, DC, March 6, 2018. Photo: Reuters / Brian Snyder

A panel at the Democratic National Committee (DNC) on Thursday voted down a resolution to condemn the influence of the American Israel Public Affairs Committee (AIPAC), the foremost pro-Israel lobbying group in the US, in Democratic primary elections. The panel also deferred a decision on resolutions to push for conditioning military aid to Israel and to recognize a Palestinian state.

The resolutions, which were considered within the newly created Middle East Working Group, were introduced into the agenda by Florida DNC member Allison Minnerly, who saw it as an opportunity to bring those who have not been “seeing their party support Palestinian rights or stand against military conflict” back into the fold of the Democratic Party, she told The Intercept.

Minnerly’s effort comes as the gap continues to widen between the official stance of the Democratic Party, which has largely supported aid to Israel in recent decades, and the views of the Democratic base, which now has an overwhelmingly unfavorable view of Israel, according to recent polling.

In recent months, a number of potential Democratic presidential hopefuls — including some who were former donors and speakers at AIPAC conferences — have been distancing themselves from AIPAC, saying they would not take money from the bipartisan group in the future.

Illinois Governor J.B. Pritzker, for example, recently said he abandoned his support for AIPAC when it “began to lean much more to the right and much more pro-Trump.” Another prominent Democrat, US Sen. Cory Booker (NJ) told Politico in March that he is no longer going to receive funds from AIPAC.

Others who have made sure to have no association with AIPAC include California Gov. Gavin Newsom and former Chicago Mayor Rahm Emmanuel.

Aside from the fact that Israel is now seen less favorably by Democratic voters, AIPAC has also become a hot topic on the left as its allied super PACs have become increasingly influential in Democratic primaries, spending millions to back candidates aligned with their positions. Critics within the party argue that this influx of money, including donations from Republican-aligned contributors, risks distorting Democratic contests and elevating outside influence.

Even so, the resolutions specifically calling out AIPAC, aiming to condition aid to Israel, and pushing to recognize a Palestinian state did not pass. Meanwhile, a separate resolution calling out all dark money went through.

“Let’s be clear on what really happened: Today, the Resolutions Committee voted to pass a resolution condemning the corrosive influence of ALL dark money in Democratic primaries,” DNC chair Ken Martin posted on X. “We had various resolutions that focused on different industries and groups, and instead of going one-by-one, we passed a blanket repudiation.”

Meanwhile, Democratic Majority for Israel President & CEO Brian Romick said in a statement that the Democratic pro-Israel group was “pleased” with the outcome of the vote.

“We’re pleased that the DNC Rules Committee rejected a set of divisive, anti-Israel resolutions,” he said. “These measures would be a gift to Republicans, would further fracture our party, and do nothing to bring Israelis and Palestinians closer to peace.”

“DMFI will continue to stay engaged with the DNC and its Task Force on the Middle East as it relates to these harmful resolutions,” he added. “The DNC and party advocates need to keep focus where it belongs — on building a united Democratic Party that can win back Congress this November.”

AIPAC spokesperson Deryn Sousa said in a statement to Politico that the DNC “made clear today that all Democrats, including millions who are AIPAC members, have the right to participate fully in the democratic process. And we plan to do just that.”

Halie Soifer, CEO of the Jewish Democratic Council of America — an organization that aims to bring Jews into the Democratic Party — told Politico that the DNC “as a whole has not shifted from where it has been … which is an organization that is inclusive of Jewish Americans and is supportive of the US-Israel security relationship, as well as Israel’s future as a Jewish and Democratic state.”

She argues that “misconceptions” about this have been driven by “a vocal, far-left faction of our party.”

“But they are in no way leading here,” Soifer said.

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