Egyptian President Abdel Fattah al-Sisi issued a stark warning at the Egypt Energy Show 2026, urging U.S. President Donald Trump to intervene and halt the escalating conflict with Iran. Sisi cautioned that a prolonged war could push oil prices above $200 per barrel, triggering "twin shocks" of supply shortages and higher prices that have yet to fully impact global markets.
Sisi's direct appeal to Trump emphasized the U.S. president's unique ability to stop the conflict, stating, "I tell President Trump: nobody can stop the war in our region in the Gulf but you." He highlighted the severe risks to energy facilities, including production sites and refineries, which could have "very serious repercussions" for the global economy and fuel inflation.
The situation intensified as Gulf Cooperation Council Secretary-General Jasem Mohamed Albudaiwi condemned Iranian attacks on energy infrastructure and the closure of the Strait of Hormuz. This critical waterway previously carried about one-fifth of global oil supplies, making any disruption a major threat. GCC member states, including Saudi Arabia and the UAE, have faced repeated drone and missile attacks.
Market volatility surged on March 31 as reports emerged that Trump was open to ending the war, even without the Strait of Hormuz being reopened. Oil prices swung dramatically, with Brent crude futures experiencing their largest-ever monthly gain of 59% in March, while WTI rose 58%. At the time of reporting, front-month Brent was steady at $113.13 per barrel.
Analysts noted that while an end to the war would ease supply concerns, the damage to Gulf energy infrastructure from military activities involving Israel, Iran, and the U.S. would take months to repair, keeping global supply limited. Sagar Dua of FXStreet stated, "An end to the month-long war would ease global energy supply concerns and anchor inflation expectations again."
The conflict's risks were underscored by an attack on a Kuwait Petroleum Corp tanker in Dubai and the rerouting of Saudi crude exports. Data from Kpler showed rerouted volumes reaching 4.658 million barrels per day through the Red Sea, a massive increase from the 770,000 bpd average in January and February. These developments, coupled with Houthi missile launches and the deployment of additional U.S. troops, highlight the severe threat to global energy security and supply chains.
