How the spiraling Iran conflict could affect data centers and electricity costs

"Energy infrastructure has become a key leverage point in the unfolding war, with Israel hitting Iranian fuel depots and Iran targeting Gulf neighbors' oil and gas infrastructure in its own strikes. Iran's paramilitary Revolutionary Guard threatened on Tuesday not to 'not allow the export of even a single liter of oil from the region to the hostile side and its partners until further notice.'"

"Iran has reportedly also started to lay mines in the strategic Strait of Hormuz, through which one-fifth of global petroleum consumption and liquefied natural gas (LNG) trade used to move."

"The fundamental issue right now, in terms of the energy implications of the conflict, is how the market is reacting to the uncertainty around safe passage through the Strait of Hormuz."

Following escalation of the US-Israel conflict with Iran, energy infrastructure emerged as a key strategic target. Israel struck Iranian fuel depots while Iran targeted Gulf oil and gas facilities and threatened to block regional oil exports. Iran's Revolutionary Guard warned against allowing oil exports from the region and began laying mines in the Strait of Hormuz, through which one-fifth of global petroleum and LNG trade flows. This strategic chokehold creates significant uncertainty in energy markets, directly impacting oil and gasoline prices globally. The conflict's energy implications center on market reactions to threats against safe passage through this critical waterway.

Read at The Verge