The Iran war has abruptly halted US oil and gas dealmaking, stalling momentum built from a record $45 billion year-to-date transaction volume, the highest in two years. Brent crude surged to $115 a barrel before retreating to $112.19, reflecting extreme volatility that makes pricing transactions impossible. Bankers and lawyers confirm everything has just shut down; no one can price deals, leading to a complete freeze on activity. This paralysis hits hard ahead of CERAWeek, traditionally the industry's busiest dealmaking event, where disposal processes were already on hold.

The surge in activity previously stemmed from companies cleaning up balance sheets post-pandemic, focusing on efficiency and shareholder returns, and a wave of consolidation in the Permian Basin following the Devon-Coterra Energy merger.