On March 8, 2026, global energy markets entered a more sensitive phase, as the effects of the US-Israeli war on Iran continue to affect the movement of oil, gas, shipping and local prices in a number of importing and producing countries alike. Reliable reports issued today showed that the impact is no longer limited to a psychological reaction within the market, but has become linked to actual disruptions in supplies, partial or total cessation of some production and export facilities, and the movement of major governments and companies to take emergency measures.
At the forefront of developments, Reuters confirmed that the conflict has effectively caused the suspension of nearly a fifth of global crude oil and natural gas supplies, as ships in the Strait of Hormuz and energy facilities in the region continue to be targeted. The agency reported that global oil prices have risen by more than 25% since the start of the war, while major Gulf countries have been forced to suspend shipments estimated at 140 million barrels, equivalent to about 1.4 days of global demand. She also noted that storage in Gulf facilities is filling up quickly, forcing fields in Iraq and Kuwait to cut production, with the UAE expected to be next if the disruption continues. Reuters quoted JP Morgan analysts as saying that the market has moved from pricing in geopolitical risks to facing tangible operational disruption.
In terms of prices, Reuters reported in its March 8 coverage that Brent crude exceeded $90 per barrel for the first time since April 2024, a clear indication of continued pressure from supply disruptions and a widening war. Saudi Aramco rose 4% and Yanbu National Petrochemical jumped 10% in Sunday's trading, while several GCC market indices rose, driven by energy and materials stocks.
In Kuwait, the big news in the oil sector was the announcement by the Kuwait Petroleum Corporation (KPC) to begin production cuts and declare a state of force majeure. Reuters reported that the decision came after eight consecutive days of disrupted shipments from the Middle East, amid threats to navigation through the Strait of Hormuz and a near-total scarcity of ships available to transport crude and products. The organization did not disclose the size of the reduction, but said the decision is precautionary and subject to review depending on developments in the situation. In February, Kuwait produced about 2.6 million barrels per day. Reuters also pointed out that Kuwait is an important exporter of naphtha to Asia and jet fuel to northwestern Europe, giving the decision a wider dimension on the international market.
In the UAE, ADNOC announced that it is managing offshore production levels to meet storage constraints, with onshore operations continuing as normal. According to Reuters, the company said that this approach maintains operational flexibility and allows for a return to normalcy without long delays. The agency reported that ADNOC uses export capacities beyond the strait, along with international storage facilities, in order to maintain continuity of supply. It also noted that Saudi Aramco has temporarily diverted some shipments to Yanbu port on the Red Sea, but the quantities going out through this route are not enough to compensate for the decline caused by the Hormuz crisis.
In the LNG sector, Qatar has remained at the center of the scene. According to previous Reuters reports that remained present in the March 8 coverage, Qatar declared a state of force majeure on its gas exports after drone attacks, while Qatar Energy offered to lease 10 LNG carriers located outside the Strait of Hormuz. Reuters reported that a Qatari facility with a capacity of 77 million tons per year went into shutdown, and that Qatar's energy minister said it would take weeks to months to return to normal deliveries even if the war ended today. LNG freight rates also rose strongly, with Atlantic rates hitting $264,250 per day, the highest level since December 2022, while Pacific rates climbed to $219,250 per day. The disruption has also intensified competition between the Atlantic and Pacific basins for gas shipments, with European and Asian gas prices rising to multi-year levels.
In a significant development today on the government response front, Reuters reports that Japan has instructed one of its national oil reserve storage sites to prepare for possible withdrawals from the reserve. The development is particularly significant because Japan relies on the Middle East for about 95% of its oil imports, while about 70% of these imports pass through the Strait of Hormuz, which the agency described as effectively closed after the US and Israeli attacks on Iran. Reuters quoted Japanese lawmaker Akira Nagatsuma as saying that the instructions came from the Natural Resources and Energy Agency, while the timing of the withdrawal is still undecided. The report pointed out that Japan has emergency reserves equivalent to 254 days of domestic consumption.
In Europe, Italy has emerged as an example of the energy crisis spilling over into urgent domestic policies. Reuters reported today that Giorgia Meloni's government is considering cutting excise duties on fuel using the increase in VAT revenue generated by higher fuel prices. Meloni said that the operationalization of this mechanism has been under consideration for several days at the Ministry of Economy. The agency added that a group representing artisans and small businesses estimated the cost of war-related high energy bills for Italian companies at 10 billion euros, while the Consumers Association demanded an immediate 10% cut in fuel duties, and transportation and agriculture groups warned of significant cost increases.
In the US, Reuters confirmed that the oil shock continues to spill over into consumer fuel prices. The national average price of regular gasoline rose to $ 3.32 per gallon, up 11% in one week, the highest since September 2024, while diesel reached $ 4.33 per gallon, up 15%, the highest since November 2023. The agency quoted US President Donald Trump as saying, "If it goes up, let it go up," in a comment on gasoline prices. It also reported that US oil contracts closed Friday at $90.90 a barrel, an increase of nearly $10 in one day, the biggest daily jump since April 2020.
In parallel, developments in the field itself had direct implications for the energy market. The Associated Press reported today that Israeli strikes overnight targeted oil storage facilities in Tehran, in what the agency described as what appears to be the first time a civilian oil industrial facility has been targeted in this war. The agency referred to plumes of flame and smoke rising over the capital, and quoted Fars news agency as saying that the strikes hit four oil storage facilities and an oil production transportation center in Tehran and Alborz, during which four tanker drivers were killed. The Associated Press also reported that Iran struck a desalination plant in Bahrain, adding a new dimension regarding critical infrastructure in the Gulf, including energy-related facilities and support facilities.
As of March 8, the picture as reported by credible sources is as follows: Oil prices above $90, production cuts in Kuwait, restrictive production management in the UAE, widespread disruptions in Gulf shipments, continued Qatari gas shutdowns and rising shipping costs, possible Japanese preparations to draw on reserves, and government action in Italy to reduce fuel burdens, with the increases being passed on directly to the US consumer. This is not an analytical reading, but rather a straightforward summary of the most important news in today's credible coverage of energy markets in the wake of the US attack on Iran and its ongoing repercussions.
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