Escalation of conflict between Iran, the United States, and Israel has led Iran to order the closure of the Strait of Hormuz, halting tanker traffic and driving global oil prices above US$80 per barrel. The effects extend to Europe, which is now reconsidering plans to end Russian gas imports, while Indonesia pushes for de-escalation via the D-8 organization and assures stable fuel supplies.
The Middle East conflict intensified since February 28, 2026, when the United States and Israel attacked Iran, prompting retaliation from Tehran. Iran's Revolutionary Guard ordered the closure of the Strait of Hormuz early this week, halting tanker traffic carrying about 20 percent of global oil consumption. A British Navy report noted a large explosion on a tanker near Iraqi waters, with the captain reporting a small boat fleeing the scene.
West Texas Intermediate crude oil prices surged 8.51 percent to US$81.01 per barrel on March 6, 2026, the largest daily gain since May 2020. Brent crude rose 4.93 percent to US$85.41 per barrel. In the US, retail gasoline prices increased nearly 27 cents to an average of US$3.25 per gallon. US President Donald Trump stated he would take further actions, including political risk insurance and naval escorts for tankers.
The Hormuz closure caused Qatar, the world's second-largest LNG exporter, to halt production since March 2, 2026. In Europe, natural gas prices jumped 75 percent this week, the highest in three years. Norwegian Energy Minister Terje Aasland said, "With the geopolitical situation we see now, I am sure the debate [about resuming Russian natural gas imports] will be revived. Like it or not." The European Union, which sources 5-15 percent of its gas from the Middle East, had agreed in February 2026 to ban Russian gas imports by the end of 2027 but now faces new pressures. Goldman Sachs estimates a one-month closure could raise European gas prices by up to 130 percent.
As D-8 chair, Indonesia continues pushing for de-escalation to prevent the conflict from widening. Indonesian Foreign Ministry spokesperson Yvonne Mewengkang stated, "As D-8 Chair, Indonesia also continues to emphasize the importance of de-escalation and urges all parties to exercise restraint." Iranian Ambassador to Indonesia Mohammad Boroujerdi hopes the D-8 will condemn the US and Israeli attacks. Iran's D-8 membership remains unaffected, and preparations for the D-8 Summit in Jakarta in April 2026 are proceeding.
In Indonesia, PT Pertamina Patra Niaga assures stable fuel supplies for Ramadan and Idul Fitri, with stocks around 21 days continuously replenished. Corporate Secretary Roberth MV. Dumatubun emphasized supply diversification and urged the public to avoid panic buying. The Ministry of Energy and Mineral Resources also guarantees no fuel price increases and controlled stocks amid geopolitical dynamics.
