Commentary Energy
It's time to end the world's delusions over the Iran energy crisis

Clyde Russell
Asia Commodities and Energy Columnist
April 7, 2026 1:44 AM EDT • Updated 1 hour ago

LAUNCESTON, Australia, April 7 - The U.S. and Israeli war against Iran has been characterised by a series of miscalculations by most of the involved and peripheral parties, but the real danger is the delusion over the scale of the resulting energy crisis.

It is delusional of any nation to think that it, or any other country, can emerge as a "winner" from the conflict, now into its sixth week. ... The reality is that ​even with a ceasefire and the resumption of vessel flows through the Strait of Hormuz in the next few weeks, an energy crisis for the world economy is locked in. ... What is required to avoid ‌making a bad situation worse is clear thinking on the part of governments, corporations and consumers.

The first delusion is thinking that the re-opening of the Strait of Hormuz will solve the current problems with the supply of crude oil, refined products and liquefied natural gas. ... The second delusion is thinking that U.S. President Donald Trump and his administration are acting rationally, taking considered decisions and are fully attuned to the economic damage being inflicted on erstwhile allies in the Gulf, Europe and Asia.

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[Trump's] threats to ​rain "hell" on Iran came after he appeared at the weekend alongside a person in an Easter Bunny costume at the White House, where he veered between talking about egg supply to threatening to destroy Iran's bridges and power plants. ... If there is an ​image that encapsulates the lunacy of the current situation, it's the president of the United States standing next to a mythical children's character related to a religious celebration of eternal salvation while threatening to destroy another country.

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