IEA Reports Unprecedented Oil Supply Shock Amid Iran Conflict

The International Energy Agency (IEA) has identified the ongoing conflict involving Iran as the catalyst for the most severe oil supply shock in history. The closure of the Strait of Hormuz, a critical passage for global oil transport, has drastically reduced shipments from over 20 million barrels per day in February to approximately 3.8 million in early April. This disruption has propelled oil prices to unprecedented levels, with North Sea Dated crude reaching $130 per barrel. The IEA now anticipates a global oil demand decline of 80,000 barrels per day in 2026, a significant reversal from earlier growth projections. The agency warns that without a lasting resolution to the conflict, the world must prepare for prolonged disruptions in energy markets.