The ongoing war in the Middle East has caused the largest disruption to global oil supplies ever recorded, according to the International Energy Agency (IEA), raising concerns about the stability of global energy markets.
In its latest assessment, the Paris based energy watchdog said the conflict involving Iran and other regional actors has significantly reduced crude oil production and export flows across the Gulf region, sending shockwaves through international oil markets.
The report estimates that global crude oil supply has already dropped by around 8 million barrels per day, while an additional 2 million barrels per day of refined petroleum products and condensates have also been taken offline.
A major reason for the disruption is the slowdown in shipments passing through the Strait of Hormuz, one of the world’s most strategic oil transit routes. The narrow waterway normally handles a large portion of global oil trade, making it critical to international energy supply.
“The Middle East war is creating the largest supply disruption in the history of the global oil market,” the IEA said, warning that the crisis could have far reaching consequences for global energy security.
To help stabilise supplies, the agency revealed that its 32 member countries have agreed to release 400 million barrels of crude oil from strategic reserves. The move represents the largest coordinated emergency release of oil reserves ever undertaken.
However, the IEA cautioned that this intervention may only provide temporary relief if the conflict continues. Prolonged tensions in the Gulf region could further tighten oil supplies and push global energy prices significantly higher.
Analysts say the evolving situation could reshape global energy markets, affecting fuel prices, supply chains, and economic stability worldwide.
