The 2026 war between U.S-Israel and Iran targeted energy infrastructure, particularly blocking the supply vein, the Strait of Hormuz. It triggered major global oil supply disruptions.  Due to its oil treasure the region has been a theatre of war, with critical infrastructure constantly targeted, as seen in attacks on oil assets in Iraq in 2003, in Libya in 2011, and now in Iran, Saudi Arabia, UAE, Bahrain, Kuwait, and Qatar 

The strategic importance of the Strait of Hormuz, roughly 20% of global oil passes through it, goes without saying. Its blockade by Iran and the upfront blockade by the US has made the region a centre for global conflict and military intervention.  

The greed for oil has historically encouraged international powers to intervene in the regional affairs, leading to regime changes. While oil has precisely been the primary driver of economic progress in the Middle East, it has also made it susceptible to invasions of powerful countries particularly, the America. 

Reading the situation of disrupted oil supply due to the conflict, and the falling global economy, the IEA advised industrialised countries to release a record 400 million barrels of oil from strategic stockpiles held by member nations to combat a spike in global crude prices⁠since the start of the U.S.-Israeli war on Iran. 

The history of oil industry in Iran is illustrative of the effects of the discovery of oil in the Middle East. A prime example of resource curse. Ironically, the  country tends to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources. It is characterized by political and military conflict, in this case caused by British and American interests in the oil industry.

On April 14, 1909, one year after geologist George Bernard Reynolds discovered oil in Persia (modern-day Iran), Burmah Oil created the Anglo-Persian Oil Company (APOC) as a subsidiary and sold shares to the public. Bulk production of Persian oil products eventually started in........

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