Energy crisis dashes global economic outlook in World Economy News 28/03/2026 Rachmat Mulyono and Irna Suryat, a married couple running a small noodle stall in Tangerang, Indonesia, said they have felt the impact firsthand, with oil prices surging and everyday essentials becoming more expensive. “The surge in oil and commodity prices has driven up the cost of ingredients, raising the expenses of running our stall. Meanwhile, higher prices for basic necessities have put additional strain on our household budget, making it harder to make ends meet,” Mulyono said. As the Indonesian government considers work-from-home measures to conserve energy, street vendors are feeling the impact firsthand, with fewer regular customers and dwindling foot traffic cutting into their daily income. This situation is not unique to Indonesia. Amid an energy crunch, many countries have taken steps to cope. Thailand has asked civil servants to conserve energy by pausing overseas travel and using stairs instead of elevators, while Bangladesh has closed universities. Elsewhere, India has instructed its refineries to prioritize the supply of liquefied petroleum gas to households over commercial establishments. Pakistan, Egypt, and Vietnam have increased fuel prices and implemented energy-saving measures. Since the conflict in Iran began on Feb 28, the Strait of Hormuz, a critical artery for global energy supplies located off the coast of Iran, has emerged as a major hot spot. Iran has restricted vessels linked to nations responsible for the conflict from passing through this strategic channel, where roughly one-fifth of the world’s oil and LNG shipments make their way to global markets. Kemas Muhammad Ramadhan, a computer engineer in Jakarta, has begun to feel the strain in everyday life, especially when it comes to energy-related essentials. “Subsidized cooking gas — once easy to find — has become increasingly scarce. The familiar green government-subsidized canisters are often nowhere to be found, forcing me to search from shop to shop,” he told China Daily. He said that if fuel prices continue to climb, he may switch to a bicycle and rely more on public transport, especially electric options, in the hope of shielding himself from rising costs. “I am also tightening my budget, cutting back on small daily expenses like buying coffee and bracing for further increases in essential items such as rice and cooking gas,” Ramadhan said. Earlier this month, the International Energy Agency took a decisive step by committing to release a historic 400 million barrels of oil from emergency reserves to stabilize supply chains and mitigate price hikes. However, industry experts have warned that the volume represents only about 20 days’ worth of global energy supplies. “The global economy is facing a major, major threat today,” said Fatih Birol, chief of the agency, on Monday. “No country will be immune to the effects of this crisis if it continues to go in this direction. So there is a need for global efforts,” Birol said. Rising energy prices and supply constraints may dent production of nonessential goods and services, which will add to the challenges faced by policymakers, including central bankers, Akrur Barua, associate vice-president at Deloitte Services India Pvt Ltd, said in an analysis. Food security Moreover, the conflict has significantly disrupted global fertilizer markets, raising concerns over global food security. Around one-third of global supplies that normall