Why the oil and gas price shock from the Iran war won’t just fade away

An Iran conflict has disrupted global oil and gas supplies significantly enough that market rerouting and diversification strategies cannot fully offset the loss. The excerpt suggests that when a substantial portion of oil and gas production is removed from circulation, traditional economic adjustment mechanisms have limited effectiveness. This supply shock carries lasting implications for energy prices and global economic stability, as markets cannot simply redirect supply to compensate for the missing volumes. Energy markets typically depend on spare capacity and alternative sources to absorb major disruptions, but the scale of supply loss from the Iran situation appears to exceed available alternatives. The inability to quickly replace lost production means elevated energy costs could persist longer than typical geopolitical shocks.