According to the International Energy Agency (IEA) monthly report, the ongoing conflict in the Middle East has created an unprecedented disruption in the global oil supply. Recent attacks on ships and oil facilities in the Persian Gulf have further complicated the situation.
Approximately 20 percent of the world’s oil passes through the Strait of Hormuz, but current flows have dwindled to a “trickle,” the report notes. Alternative export routes in Gulf countries are limited, and storage tanks are rapidly reaching capacity. As a result, the affected countries have collectively reduced daily oil production by at least 10 million barrels.
The IEA has warned that if maritime traffic is not restored quickly, supply shortages could intensify. Forecasts indicate that global oil supply may decrease by approximately 8 million barrels per day this month. Since the outbreak of the conflict on February 28, oil production has been significantly curtailed in seven major producers: Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, Qatar, Bahrain, and Iran.