The ongoing war involving Iran is triggering an oil and gas crisis that experts say is worse than those in 1973, 1979, and 2022 combined. Fatih Birol, executive director of the International Energy Agency (IEA), warned that the conflict’s impact on global energy markets is severe and far-reaching. The crisis stems from the blockade of the Strait of Hormuz, a key oil shipping route. Birol said developing countries are most at risk, facing higher fuel and food prices, along with faster inflation. European nations, Japan, and Australia will also feel pressure on energy costs. Oil prices fluctuated around $110 a barrel on Tuesday. Prices briefly surged above that level after U.S. President Donald Trump issued a stark warning on Iran, claiming a “whole civilization will die tonight” if Tehran did not meet U.S. demands. Later, prices eased slightly below $110. Trump set a deadline for Iran to reopen the strait or face further attacks on civil infrastructure, including power plants. Reports also indicated U.S. strikes on Kharg Island, a major Iranian oil export terminal. Analysts say markets are highly volatile amid the uncertainty. Daniela Hathorn, senior market analyst at Capital.com, said, “The situation has evolved into a near-term binary outcome: either escalation through direct strikes on Iranian infrastructure, or a last-minute de-escalation that could trigger a sharp reversal in risk assets.” Global stock markets reacted to the tensions. European shares fell, with London’s FTSE 100 down 0.84%, Germany’s DAX losing 1.1%, and France’s CAC 40 dropping 0.7%. Wall Street opened lower, with the Dow Jones down 296 points, or 0.64%, at 46,373. Asian markets were mixed, with South Korea’s Kospi rising 1.1% while Hong Kong’s Hang Seng fell 0.7%. The conflict has fueled investor concern since the U.S.-Israel attack on Iran in February. The partial closure of the Strait of Hormuz has rattled confidence and added inflationary pressure. International financial leaders also warn of broader economic consequences. Kristalina Georgieva, head of the International Monetary Fund (IMF), said the war will likely slow global growth and increase inflation. She noted that prior to the conflict, the IMF had projected global growth of 3.3% in 2026 and 3.2% in 2027. Now, she warned, “all roads lead to higher prices and slower growth.” The IMF is expected to release its World Economic Outlook report next week. In the UK, drivers are already feeling the impact. The RAC reported “significant fuel price rises” over Easter, with petrol up 2.6p a litre to 157.02p and diesel up 4.2p to 189.42p. The war is also pushing the UK economy toward stagflation. A survey by S&P Global found service sector growth at its weakest in 11 months in March, reflecting lower business and consumer spending. Thomas Pugh, chief economist at RSM UK, warned, “The inevitable conclusion is that the UK is in for another bout of stagflation, even if the conflict ends soon. If it drags on longer, a recession looks likely.” With the Iran war continuing, energy markets and economies worldwide face heightened uncertainty. Rising oil and gas prices threaten inflation, economic growth, and stability, particularly for vulnerable developing nations.