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By Goli Innocent
The ongoing conflict in the Middle East has triggered the biggest disruption to global oil supply ever recorded, the International Energy Agency has said, warning that the crisis is already reshaping the global energy market.
In its latest assessment, the Paris-based energy watchdog said the war involving Iran and regional actors has significantly curtailed crude production and export flows across the Gulf, sending shockwaves through oil markets worldwide.
According to the report, global crude supply has already fallen by about 8 million barrels per day, while another 2 million barrels per day in refined petroleum products and condensates has also been knocked offline.
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A major factor behind the disruption is the severe slowdown in shipments through the strategic Strait of Hormuz, a vital corridor that normally handles a large share of the world’s oil trade.
“The Mideast war is creating the largest supply disruption in the history of the global oil market,” the IEA said in the report, highlighting the scale of the crisis facing energy markets.
To stabilise supplies, the agency said its 32 member countries had agreed to release 400 million barrels of crude from strategic reserves, the largest coordinated emergency release in history.
However, the IEA warned that the measure may only offer temporary relief if the conflict persists, noting that prolonged tensions in the Gulf could further tighten global oil supplies and push prices higher.
