Crude oil and LNG supplies risk the worst-case outcome

Imagine this: gas prices climbing fast, your winter heating bill jumping, and factories scrambling to keep the lights on. That's the spot we're in right now with crude oil and liquefied natural gas. A month after U.S. and Israeli strikes hit Iran in late February, the world's energy flows have already taken a serious hit. Analysts are concerned that the situation could still escalate into a series of widespread attacks across the Gulf.

It started with retaliatory strikes that hammered Qatar's massive LNG plants, the ones that send out about 15 percent of the planet's supply. Those facilities got badly damaged, and repairs could drag on for years. On top of that, tanker traffic through the narrow Strait of Hormuz, which normally carries one-fifth of global oil and LNG, has slowed to a trickle. Even Australia saw a surprise outage at one of its big LNG projects last week, adding to the squeeze.

For everyday folks, this means higher costs everywhere. Asia feels it first, think China, Japan, and South Korea scrambling for fuel. But it ripples out: more expensive gasoline at the pump, pricier plastics in your grocery bags, and factories passing on the pain to everything from cars to clothes.

Oil prices have already climbed above $115 a barrel, and natural gas prices in Asia have surged even faster.

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