According to the International Energy Agency’s monthly report, the Iran war is causing unprecedented turmoil in oil markets, affecting 7.5% of global supply and a larger share of exports.
“The war in the Middle East is creating the largest supply disruption in the history of the global oil market,” the IEA said in its monthly report on Thursday.
The IEA estimates that the war will cut global oil supply by 8 million barrels a day this month, totaling nearly 250 million barrels. Flows through the Strait of Hormuz, which saw 20 million barrels of crude and products pass last year, have dropped by more than 90%.
The report follows IEA Executive Director Fatih Birol ‘s decision yesterday to release 400 million barrels of oil from reserves—marking the largest emergency stockpile release in the agency’s history.
US Energy Secretary Chris Wright said the US will deploy 172 million barrels from its Strategic Petroleum Reserve, though it will take approximately 120 days to fully deliver.
Following the release, oil prices saw minimal relief: crude prices increased by approximately 5% overnight, with Brent crude briefly surpassing $100 per barrel.
By CEO NA Editorial Staff
