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The global energy system is facing what the International Energy Agency (IEA)<\/a> has described as the largest crisis in history<\/a>, driven by disruptions linked to the Iran war, surpassing previous shocks<\/a> including the oil crises of the 1970s. At the centre of the disruption is the Strait of Hormuz, a critical maritime chokepoint through which a significant share of global oil and liquefied natural gas flows, with instability affecting both production and transportation<\/a>. The situation has been compounded by existing pressures such as reduced gas supplies linked to the war in Ukraine, creating a layered crisis<\/a> across multiple regions and markets.<\/p>\n In response, the IEA has coordinated a record release of oil from strategic reserves to stabilise markets and address supply shortages and price volatility. Beyond supply constraints, rising energy costs are affecting broader economic conditions<\/a>, with implications for inflation and industrial activity, particularly in import-dependent economies. Governments are being advised to implement targeted support measures<\/a>, alongside energy efficiency and demand reduction efforts, to balance immediate relief with longer-term resilience.<\/p>\n Singapore is increasing its procurement of liquefied natural gas (LNG)<\/a> as the Iran war disrupts global supply flows and tightens energy markets, reflecting efforts to secure sufficient fuel amid reduced availability. The disruption stems from constraints in key supply routes and reduced LNG flows, intensifying competition for cargoes<\/a>, particularly among Asian buyers. In response, Singapore is sourcing additional LNG and diversifying supply sources<\/a> to strengthen resilience in an increasingly uncertain market.<\/p>\n Natural gas remains central to Singapore\u2019s energy system<\/a>, accounting for the majority of electricity generation and making it sensitive to supply disruptions. Tighter market conditions have driven higher LNG prices<\/a> and more complex contract negotiations, with spot cargoes becoming more expensive amid strong demand. At the same time, energy buyers are adjusting procurement strategies while existing LNG infrastructure and storage capacity help buffer short-term shocks and maintain system stability.<\/p>\n Read more in our live blog below, including the latest local and international news and updates.<\/p>\n\n