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Negotiations for oil and gas deals in the United States have stalled amid escalating tensions in the Middle East, according to reports. The disruption to energy markets comes as regional instability increases, raising concerns about global supply chains and prices. On Friday, Fitch Ratings released a report forecasting that the average price of Brent crude oil could reach $100 per barrel in 2026 if shipments through the Strait of Hormuz are halted for three months, and $120 per barrel if the closure extends to six months. Bankers and lawyers working on such transactions have indicated that dealmaking has largely ground to a halt as companies await greater certainty regarding market stability and fuel prices. “Everything is frozen… I have several deals in the works, long-term contracts, but right now everything is paralyzed because no one can determine a price,” a representative from a law firm specializing in fuel transactions told reporters. The situation follows earlier statements from former U.S. President Donald Trump, who warned that the U.S. Would destroy Iranian power plants – starting with the largest – should Iran not reopen the Strait of Hormuz within 48 hours. The current instability began on February 28, when the United States and Israel began conducting strikes against targets in Iran. Tehran subsequently launched retaliatory attacks against Israeli territory, as well as U.S. Military installations in the Middle East. The escalation surrounding Iran has effectively blockaded the Strait of Hormuz, a critical route for oil and liquefied natural gas shipments from the Persian Gulf to the global market. This has likewise impacted oil exports and production in the region. The development underscores growing regional tensions and the potential for wider economic consequences.
