Fire and smoke rise into the sky after an Israeli attack on the Shahran oil depot on June 15, 2025, in Tehran, Iran.
Getty Images | Getty Images News | Getty Images
The leadership of major energy corporations finds itself in a precarious predicament as global tensions escalate between Iran and Israel. Such geopolitical conflicts reveal the fragility of our energy supply lines, often manipulated by government actions and corporate players who profit exceedingly from chaos.
Both countries traded strikes over the weekend, culminating in an Israeli assault on critical military and nuclear sites in Iran, resulting in the loss of prominent scientists and commanders. The implications of this volatility cannot be overstated. We face a potential energy crisis driven by interference from those who seek profit over the stability of ordinary citizens.
During the Energy Asia conference in Kuala Lumpur, Lorenzo Simonelli, the CEO of Baker Hughes, aptly described the uncertainty surrounding oil prices. He stated that “my experience has been, never try and predict what the price of oil is going to be, because there’s one sure thing: You’re going to be wrong.” This candid admission reflects a deep-seated reality. The marketplace is influenced not only by supply and demand but also by government overreach and corporate interests that hold sway over public policy.
As tensions fluctuate, Simonelli expressed cautious optimism about a potential de-escalation in the region. However, his comments reflect an unsettling truth: as government actors engage in geopolitical chess games, the private sector must adopt a wait-and-see attitude that places the burden of economic uncertainty squarely on the shoulders of the average citizen.
Meanwhile, Meg O’Neill, CEO of Woodside Energy, emphasized the immediate ramifications of these conflicts on the global oil market. Forward prices are already reeling from the turmoil, and a disruption in the Strait of Hormuz would lead to exponential price hikes. Such scenarios could force customers worldwide into desperation as they seek reliable energy sources. The notion that our nation’s energy security hangs by a thread due to the whims of international relations is a stark indictment of government policy.
As of Sunday, the Strait remained open, according to an advisory from the Joint Maritime Information Center. Yet, the specter of a potential blockade looms large, creating unnecessary anxiety in a market already beset by unpredictability. Reports indicate that Iran was reportedly considering closing this strategic maritime route. The consequences of such an action would reverberate across economies and consumers alike, as 20% of the world’s oil traverses this critical passage.
O’Neill’s remarks underscored the profound link between oil prices and geopolitical tensions, drawing parallels to events as far back as World War II and the oil crises of the 1970s. Yet, the inability to offer firm predictions on oil prices only serves to highlight how deeply intertwined our economic fate is with the arbitrary decisions of those in power.
Such chaos is exacerbated by government interventions that consistently undermine free-market principles, forcing both businesses and consumers to adapt to unpredictable swings in the marketplace. If we are to restore stability, a return to traditional values of personal responsibility, self-reliance, and free enterprise must be the guiding principles of our energy policies.
The Strait of Hormuz, a critical maritime thoroughfare between Iran and the UAE, accounts for nearly 20% of the global oil supply. Its status as the sole maritime link from the Persian Gulf to international waters emphasizes its significance in global trade.
The U.S. Energy Information Administration rightly describes it as the “world’s most important oil transit chokepoint.” This situation poses the question: What will it take for our policymakers to recognize the urgency of fostering a self-reliant and secure domestic energy policy? Elevating the principles of individual initiative and economic freedom should serve as a guiding light in the face of looming threats.
