Energy & Environment

The Iran War Has Already Hurt Oil Production More Than the '70s Energy Crisis Did

The conflict is squeezing global supply and pushing prices up.

Reem Ibrahim | 3.25.2026 1:00 PM

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(M. Scott Brauer/ZUMAPRESS/Newscom)

Days after Israel and the United States began bombing Iran, White House trade adviser Peter Navarro boldly proclaimed that the "Iran war will lower energy prices." Navarro's prediction has, thus far, been exceedingly wrong. 

The war has led to the effective closure of the Strait of Hormuz, through which about 20 percent of the world's oil passes. As a result, global oil prices have continued to fluctuate, reaching as high as $119 per barrel on March 19, before falling to about $99 a barrel following signals of possible de-escalation.

If the war has given you a sense of déjà vu from the energy crisis of the '70s, you're not alone. In fact, in some ways, it's been worse. Fatih Birol, the head of the International Energy Agency, said on Monday that the war has caused global oil production........

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