Tell the Truth: Why Are Energy Prices So High? |
Tell the Truth: Why Are Energy Prices So High?
The sharp rise in oil and gas prices amid the conflict surrounding Iran calls into question the common explanations for the energy crisis and highlights how complex the real mechanisms governing global energy markets remain.
With the fracking and the US being almost energy independent, it should not be so high; also, part of the game is to screw over average working-class folks. Poor Americans — the good times are over.
However, to listen to Trump, all is falling into place; Iran wants to negotiate, and any energy price fluctuations are temporary; the joint effort to show Iran who is in charge has been well worth it. But beyond barefaced lies and the BIGGER scheme of things, the REALITY is far more complicated than the Zionist lobby and Trump’s spin doctors would have many clueless Americans believe.
But closer to the truth, one Iranian politician was recently quoted as saying:
“No negotiations have been held with the US, and fake news is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped in”.
“No negotiations have been held with the US, and fake news is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped in”.
It seems just too simple for me to buy into the latest general attitude, blaming it on the Israeli-American war on Iran. The volatility of energy (including oil, gasoline, and natural gas/LNG) is currently high due to a major geopolitical shock: the ongoing war with Iran that began in late February 2026.
At least we can thank Trump for his “prudence” and “better judgment” to delay strikes on Iranian energy targets, as he understands that the price of fuel at the pump is going to create a great backlash at polling stations during the upcoming midterm elections, likely shifting the political balance to the Democrats and perhaps bringing about his eventual removal.
Yes, this conflict has caused significant disruptions to global energy supplies, at least for now, particularly through attacks on oil and gas facilities in the region and Iran’s effective closure or severe restriction of shipping through the Strait of Hormuz — a critical chokepoint where about 20% of the world’s oil and a substantial portion of LNG normally flow. However, oil is still moving in the region, even through Hormuz.
Straightforward Narratives
However, purportedly straightforward narratives often fall short of capturing the true dynamics at play, particularly regarding the impact of Western sanctions on Russia’s economy. This is especially true in terms of the impact of the Israel-US attack on Iran and its energy sector, the resulting collateral damage, and the blowing up of some energy structures in the Gulf States.
The oil is still flowing to Asia, through the Strait of Hormuz, albeit with Iran acting as the toll booth. Moreover, Iranian oil is still being exported, and sanctions have been lifted on Russian oil in an attempt to keep prices down.
Mainstream media blindly repeat how the Iran war has tightened oil and LNG supply, much in part due to targeted Israeli bombing of gas fields in the Gulf States, which increases prices and exposes Europe’s over-dependence on global markets, whereas all the while, the EU claims to be weaning itself off Russian energy imports. As for the US, if we can trust the data, only about 3% of oil consumption comes from the Middle East—the lowest since the Arab oil embargo of the 1970s.
It is Russia that stands to benefit from the blowback of higher prices, as it regains its position, even without the US lessening sanctions, of being India’s biggest energy supplier. With a smile on my face, I look into the mirror of irony: sanctions and diversification have not lived up to their billing. Europe may soon find itself even more dependent on Russia for its energy to maintain any hope for positive economic development.
It makes one wonder, who exactly is most targeted by the attack against Iran? Too many in the West naively hold on to the belief that the Russian economy is suffering from crippling setbacks due to external pressures, sanctions, and the inability to freely sell its energy on the international market, especially in light of the long-running conflict in Ukraine and now the war in Iran.
What escapes critical review is that Iran and Russia are continuing to export their energy, albeit at higher-than-ever prices, and this trend is likely to continue, at least as long as fighting continues. It is the West and its erstwhile strategic partners who are suffering the most in the so-called “battle between good and evil”.
The European Union has heavily relied on Russian oil and gas, a relationship intricately woven through extensive infrastructure that cannot be easily dismantled. Much to the dismay of the West, Russia, and Iran diversified their economic bases long ago, and without much fanfare.
It’s almost inexplicable why oil prices aren’t much higher if things are as bad as we see on the nightly news. But here’s why markets are ‘resilient’ so far despite the biggest energy supply shock ever. Ironically, oil production is at an all-time high, while demand is tapering off in parts of Asia, particularly China, due to the switch to electric cars. The weather is also cooperating, driving down demand, but prices continue to increase regardless.
In the US, for instance, as of March, the price for a gallon of regular gas at the pump jumped by just over a dollar, a 40 percent increase. This is although the US has released oil from its strategic reserves, which was likely done more for psychological purposes than for actual need.
As mentioned earlier in NEO, Western governments have a tendency to manipulate economic statistics, and they act based on public perceptions, personal profits, and short-term political goals.
Russia and Iran are benefiting— yes, ironically, higher global prices help both:
Russia has seen oil export revenues rise (e.g., 14% higher daily earnings in early March), with temporary US sanctions relief allowing more sales (especially to India) and even Russian crude trading at premiums in some markets.
Overall, straightforward narratives like “just greed” or “sanctions crippling Russia” miss the complexity — geopolitical events like this war create real supply risks that override production highs or demand softening (e.g., from EVs in China or mild weather).
We can safely expect that prices could stay elevated if disruptions persist, but markets are somewhat “resilient,” and there was already a glut in some areas. The situation, however, remains fluid and highly uncertain.
It is worth-mentioning, much to the dismay of the West, that by rerouting some of Russia’s exports to high-volume buyers in Asia—such as China and India—Russia initially capitalized on soaring global prices to offset all the efforts to stifle its political-economy and impose hardships, and higher prices more than offset efforts to wean off Russian energy, especially by the EU.
The road forward for Iran and Russia may be fraught with challenges, but it also presents opportunities for adaptation—such as controlling the source of access to the oil of others. It is necessary to learn to weather the storms of energy conflict and political discord. This all can be compared to a Mexican standoff.
Naturally, Russia is being granted a financial boost from higher prices. However, it could also enjoy a geopolitical boost as it becomes an indispensable supplier and guarantor of food security for the Global South, which includes the export of much-needed commercial fertilizers.
Why is the price of energy so high? It just doesn’t add up to me, given such already high production levels, and demand going down, at least in some markets, mostly due to bottlenecks in shipments from the Middle East. Perhaps higher insurance rates are a factor?
However, prices being so high in the US seems counterintuitive, and greed, insider trading, and war profiteering seem to be the main reasons.
I was never good at Math
Ultimately, the math doesn’t add up! With record non-Middle East production, softening Asian demand from electrification, and cooperative weather, oil prices should be lower—yet they’re not. The bottleneck isn’t greed alone (though profiteering plays its part); it’s the hard reality of global energy flows: you can’t flip a switch to reroute millions of barrels overnight, especially when different regions produce different grades of oil!
Infrastructure ties, chokepoints like Hormuz, and decades of interdependence mean disruptions anywhere ripple everywhere—even to “energy-independent” America, where the Strategic Petroleum Reserve release feels more like psychological theater than a fix.
They’re exporting at premium prices, their diversified markets and resilience turning Western pressure into windfalls—Russia’s daily oil earnings increased by 14% in early March. Europe, still hooked on Russian energy despite diversification dreams, faces the harshest blowback: higher costs, economic strain, and ironic renewed dependence.
This isn’t a battle of good versus evil—it’s a high-stakes Mexican standoff where energy security exposes vulnerabilities on all sides. Prices may ease if de-escalation occurs or alternative routes stabilize; however, as long as fighting persists, expect elevated costs and uncomfortable truths: geopolitical maneuvers, fear tactics, and the influence of the Zionist lobby impact markets more than actual production statistics, energy flows, or wishful thinking.
The West’s strategic partners suffer most, while adversaries adapt and profit. In this interconnected world, controlling energy isn’t about dominance—it’s about surviving the blowback Trump has unleashed.
Finally, there is one nasty thought: could the havoc Trump’s war of choice is wreaking on the international economy be the very reason he is doing it? The US has already reached the point where its debt is unsustainable. Could we be seeing the deliberate torching of the world economy as the US tries to wipe out its debts?
Henry Kamens, columnist and expert on Central Asia and the Caucasus
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