economy
March 12, 2026
Iran War Causing Largest Disruption of Oil in History, IEA Says
The nearly two-week-long war in the Middle East has created the “largest supply disruption” in the history of global oil markets, the International Energy Agency said, as production from Gulf countries has been slashed and exports through the Strait of Hormuz have been halted.
TL;DR
- The war in the Middle East is causing the largest supply disruption in global oil market history.
- Exports through the Strait of Hormuz have halted, with traffic dropping by approximately 97%.
- The IEA has slashed its forecast for oil supply growth by over 1 million barrels per day.
- Oil prices have surged, with Brent crude rising nearly 7% to above $98 a barrel.
- Gulf countries have cut production by roughly 10 million barrels per day due to storage issues and halted exports.
- Western nations and allies are releasing a record 400 million barrels from oil reserves to mitigate disruptions.
- The IEA is now projecting global oil supply to rise by 1.1 million barrels per day in 2026, down from 2.2 million previously estimated.
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