World Business Report Energy price shock as US-Israel war on Iran continues
Mar 10, 2026
Barisan Etharajan, BBC reporter on India, describes how LPG shortages are crippling restaurants and local supply chains. Simon Jack, BBC Business Editor, analyzes energy market turmoil, shipping disruptions and Saudi pipeline alternatives. They discuss shipping backlogs, storage limits and the ripple effects on fuel-dependent businesses.
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East West Pipeline Eases But Does Not Solve Hormuz Risk
- The Saudi East-West pipeline offers a partial workaround to a Hormuz shutdown by moving Gulf oil to the Red Sea and Mediterranean.
- It can carry about 7 million barrels a day, but a further west choke point limits throughput to about 5 million barrels a day, leaving markets exposed if Hormuz stays closed beyond days or weeks.
Aramco Warns Short Closure Could Become Catastrophic
- Aramco warned of catastrophic consequences if the Straits of Hormuz were closed for an extended period.
- Analysts say closures beyond roughly two weeks would trigger major supply problems, though Aramco claimed it could restart production in days rather than months if shut.
Storage Limits Could Force Gulf Production Cuts
- About 20% of world oil and gas transits the Straits of Hormuz, and LNG output has already been affected with Qatar shutting a major plant.
- Storage and tanker capacity are filling fast, forcing potential production shutdowns because produced oil has nowhere to go.