The oil crunch the world dodged after the Iran war began is now arriving, and that is bad news for drivers, Europe, Asia, and heavily indebted governments everywhere.

• Iran-backed militias in Iraq knocked out Saudi Arabia's East-West pipeline, the main route for getting oil around the Strait of Hormuz, and repairs could take days or six weeks.
• The Houthis are blockading Saudi shipping in the Red Sea, so Saudi exports from the west coast have collapsed and Riyadh has cancelled small oil shipments to Europe.
• Saudi output is at its lowest in over 30 years and storage is filling up, so the kingdom may have to shut wells that are hard to restart later.
• Iran is escalating because US strikes are loosening its grip on Hormuz, and it sees control of the strait as its main shield against renewed attack.
• The emergency buffers are gone: the US strategic reserve is at its lowest since 1982, the IEA's record release is spent, and China is buying oil again.

Oil has nearly doubled since late last year to over $100 a barrel, and Chevron's CEO says the inventories that kept prices in check have largely run out. Iran's attacks on neighbors like Oman have also backfired, with Gulf states refusing to discuss its planned Hormuz toll.

Outlook: With reserves drained and Iran reaching for a wider war, expect oil prices and shortages to get worse in the coming months, with rich countries paying dearly to avoid a recession.