The International Energy Agency (IEA) has warned that the ongoing conflict in the Middle East has triggered the largest disruption to global oil supply ever recorded, immediately reshaping international energy markets.
In an urgent assessment, the Paris-based energy watchdog stated that the war, involving Iran and other regional actors, has significantly curtailed crude production and export flows from the Gulf region. The IEA reported that global crude oil supply has already fallen by approximately 8 million barrels per day. An additional 2 million barrels per day of refined petroleum products and condensates have also been removed from the market.
A major factor in the supply collapse is the severe slowdown in shipments through the Strait of Hormuz, a critical global transit chokepoint. The strait normally facilitates the movement of a substantial portion of the world’s seaborne oil. “The Middle East war is creating the largest supply disruption in the history of the global oil market,” the IEA said.
To mitigate short-term shortages and stabilise supply, the agency’s 32 member countries have coordinated the largest emergency release of strategic oil reserves to date, committing 400 million barrels of crude oil to the market.
The IEA cautioned, however, that this intervention may offer only temporary relief should hostilities persist. Prolonged tensions in the Gulf risk further tightening global oil supplies and exerting upward pressure on prices in the coming months. The agency emphasised that the situation remains fluid and is closely monitoring developments, underscoring the unprecedented scale of this supply shock and its immediate impact on global energy security.
