Global operating costs hit record as Iran war roils energy markets

The U.S.-Iran conflict has reignited a scramble across Asia to secure alternative oil supplies and expand strategic reserves, as renewed hostilities in the Strait of Hormuz threaten to choke off the waterway through which roughly 20 percent of the world's oil normally passes.

Strait of Hormuz Turmoil Deepens

The latest escalation came in early July when the United States launched strikes against more than 100 Iranian targets after attacks on commercial vessels in the Strait. On July 12, U.S. Central Command said it struck Iranian positions "to continue degrading their ability to attack civilian mariners and commercial ships freely transiting the Strait of Hormuz". President Trump subsequently announced the reinstatement of a U.S. naval blockade targeting Iranian shipping and declared a 20 percent fee on all cargo transiting the waterway.usatoday+2

Oil prices surged in response, with Brent crude climbing above $83 per barrel and West Texas Intermediate topping $78. The disruption has undone months of tentative progress toward restoring normal shipping through the Gulf.finance.yahoo+1

Asia's Vulnerable Economies Bear the Brunt

Countries across the region that depend heavily on Middle Eastern oil imports have been hit hardest. The Philippines, which imports 98 percent of its petroleum from the Gulf region, became the first nation to declare a national energy emergency in March after diesel prices exceeded 130 pesos per liter — more than double pre-war levels — and gasoline surpassed 100 pesos per liter. The Philippine Institute for Development Studies warned that between 1.3 million and 3.1 million Filipinos could be pushed into poverty as a result.wikipedia+1

Japan released a second round of strategic oil reserves in May, supplying 5.8 million kiloliters — roughly 20 days of domestic consumption — from 10 locations nationwide. According to Reuters Thomson Reuters Corporation ↗ 2.92%, governments are now set to purchase millions of barrels through 2028 to rebuild emergency stockpiles, with replenishment potentially adding up to 664,000 barrels per day of demand by the third quarter of 2027. A June Reuters analysis estimated that new storage plans across vulnerable nations could require roughly 500 million barrels of crude and refined products.reuters+2

Economic Fallout Reaches Record Levels

The war's economic toll continues to mount globally. A quarterly survey released Tuesday by the Association of Chartered Certified Accountants and the Institute of Management Accountants found that over three-quarters of accountants worldwide reported increased operating costs in the second quarter of 2026 — a series record. Among CFOs, 83 percent experienced higher costs, following a rise of more than 20 percentage points from the first quarter. Economic pressures returned as the top risk priority among respondents at 22 percent, ahead of geopolitical instability at 20 percent.theglobeandmail+1

The findings underscore how the conflict's disruption to energy markets has rippled through the global economy, with 72 percent of survey respondents expecting inflation in their country to increase over the next three months.accaglobal