The conflict in the Middle East has caused the largest disruption to oil supplies in history, the International Energy Agency (IEA) said.
„The war in the Middle East has caused the largest disruption to supplies in the history of the global oil market. The flows of oil and petroleum products through the Strait of Hormuz have fallen from about 20 million barrels per day to a minimum, with bypasses in this critical waterway restricted and storage facilities filling up,“ the IEA report said.
Producers and consumers around the world are already feeling the effects of this crisis. Since the conflict began on February 28, oil prices have jumped by about $20 to $92, with the price of petroleum products rising even faster.
The Gulf states have reduced their combined oil production by at least 10 million barrels per day (bpd).
Significant supply cuts have been seen in Iraq, Qatar, Kuwait, the UAE and Saudi Arabia. The closure of the strait is forcing export-oriented refineries to reduce production or stop altogether: 3 million bpd of processing capacity has been suspended, with more than 4 million bpd at risk.
The IEA notes that the oil market disruptions are mainly affecting Asian countries, as well as Europe (for jet fuel) and Africa (for gas oil). Saudi Arabia and the UAE may be able to redirect some of their oil production, which could go some way to offsetting the loss of supply through the Strait of Hormuz.
In 2025, nearly 20 million barrels per day of oil and petroleum products passed through the Strait of Hormuz. Since the conflict began, the volume of supplies has fallen to less than 10% of pre-crisis levels, the report said.