U.S.-Israel-Iran War and Russia-Ukraine Strikes Are Causing an Oil Crisis
Two simultaneous wars—Russia–Ukraine and US–Israel vs Iran—have sharply disrupted global oil supply, spiking prices and creating widespread economic uncertainty.
The world is facing a severe oil crisis due to two simultaneous wars.
In Europe, Ukraine has intensified drone attacks on Russia’s oil infrastructure since March 2026, targeting major refineries, ports, and pipelines. Around 40% of Russia’s oil exports—about 2 million barrels per day—are now halted, marking the worst disruption in modern Russian history. Ukraine aims to reduce Russia’s oil revenue and weaken its military.
In West Asia, the US and Israel are in conflict with Iran, disrupting supply around the Strait of Hormuz.
Together, these crises have pushed oil prices from $80 per barrel in February to $100–108 by late March, affecting transport, fuel costs, and global inflation.
India, the world’s third-largest oil importer, is heavily affected, sourcing about 40% of its oil from West Asia and also importing discounted Russian crude. India reduced Russian imports by 32% in February 2026, but Reliance Industries has now booked 6 million barrels for March, and a US waiver allows continued Russian purchases. Imports could rise to 1.8–2.2 million barrels per day, though shortages and price spikes remain risks.
The human toll is significant: since 2022, over 275,000 Russian and 100,000 Ukrainian soldiers have died, alongside tens of thousands of civilians. In the US–Israel vs Iran conflict, nearly 2,000 Iranians and 19 Israelis have died.
These wars are now linked through oil, reducing global supply, raising prices, and creating economic uncertainty worldwide.
