Middle East War Triggers Largest Oil Supply Disruption in History — IEA

The ongoing war in the Middle East has triggered what the International Energy Agency (IEA) describes as the largest disruption to global oil supply in the history of the energy market.

In a report released Thursday, the agency said tensions linked to Iran’s control over key regional energy routes have forced Gulf oil producers to cut output significantly, removing about 7.5 percent of the world’s total oil supply and an even greater share of global exports.

The most immediate impact has been the near-total shutdown of the Strait of Hormuz, one of the world’s most critical energy corridors. The waterway carried around 20 million barrels of crude oil and petroleum products daily last year, but shipments have now dropped by more than 90 percent.

According to the IEA, the conflict is expected to reduce global oil supply by roughly eight million barrels per day this month alone, equivalent to nearly 250 million barrels overall.

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Energy analysts warn that the disruption could push global oil prices higher and deepen economic pressures in energy-importing countries if the conflict continues. Gulf producers are already struggling to reroute shipments and stabilize supply as tensions persist across the region.