Global Leaders Scramble to Contain Rising Oil and Gas Prices

Stopgap measures aren't enough to halt rising prices as the world grapples with oil supply disruptions from the Iran war.

Apr. 7, 2026 at 10:57am

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An abstract illustration composed of overlapping triangles and circles in shades of blue, red, and yellow, conceptually representing the complex dynamics of the global oil market and the challenges of restoring stability in the face of supply disruptions.As global leaders struggle to contain the fallout from the oil supply crisis, the need for a more resilient and diversified energy system becomes increasingly clear.NYC Today

Global leaders have been scrambling to contain the rising cost of oil and gasoline since the start of the Iran war, which took a record amount of oil off the market when tankers full of crude were stranded in the Persian Gulf and military strikes damaged refineries, pipelines and export terminals. While the leaders have taken various measures to increase oil supply, including tapping emergency reserves and lifting sanctions, experts say these stopgap measures aren't enough to replace the lost oil and stabilize prices.

Why it matters

The disruption in global oil supply caused by the Iran war has led to a sharp rise in oil and gasoline prices, putting a strain on consumers and the broader economy. The inability of world leaders to quickly and effectively address the supply shortage highlights the vulnerability of the global energy system to geopolitical conflicts and the limitations of short-term fixes to address such crises.

The details

Before the war began, roughly 15 million barrels of crude oil and 5 million barrels of oil products passed daily through the Strait of Hormuz, the narrow mouth of the Persian Gulf, amounting to about 20% of global oil consumption. In addition, some oil-producing nations in the Middle East have halted oil production because they can't ship fuel out of the Gulf and their storage tanks are full, taking about 10 million barrels per day off the market. The IEA said the 'resumption of transit through the Strait of Hormuz is the single most important action to return to stable oil and gas flows and reduce the strains on markets and prices.' However, world leaders have been limited in their ability to quickly replace the lost oil, with measures like tapping emergency reserves and lifting sanctions only providing incremental relief.

  • Before the war began, roughly 15 million barrels of crude oil and 5 million barrels of oil products passed daily through the Strait of Hormuz.
  • Some oil-producing nations in the Middle East have halted oil production since the start of the war, taking about 10 million barrels per day off the market.

The players

Donald Trump

The President of the United States who has taken various measures to increase oil supply, including tapping the Strategic Petroleum Reserve and temporarily waiving the Jones Act.

International Energy Agency

A group of 32 nations that began releasing the largest volume of emergency oil reserves in its history, 400 million barrels, in an effort to ease the supply crunch.

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What they’re saying

“You're talking about these different patches being at the level of maybe 1 to 2 million barrels a day each, and you've got to get to 20, so it's hard to see those actually adding up to the numbers that are needed. And then the question is, how long can you sustain those?”

— Mark Barteau, Professor of Chemical Engineering and Chemistry at Texas A&M University

“But all of that spare capacity is also bottled up inside the Persian Gulf right now and it can't get to market either. So the main emergency response system that we have is also blocked.”

— Jim Krane, Energy Research Fellow at Rice University's Baker Institute

What’s next

The IEA said the 'resumption of transit through the Strait of Hormuz is the single most important action to return to stable oil and gas flows and reduce the strains on markets and prices.' However, achieving this will depend on the resolution of the ongoing conflict in the region.

The takeaway

The inability of global leaders to quickly and effectively address the oil supply shortage caused by the Iran war highlights the vulnerability of the global energy system to geopolitical conflicts and the limitations of short-term fixes to address such crises. The situation underscores the need for greater investment in diversifying energy sources and building more resilient supply chains to mitigate the impact of future disruptions.