IEA Warns Iran War Worsens Oil Supply Crunch

The International Energy Agency (IEA) has reported that global oil markets are facing a more severe supply squeeze than expected due to the ongoing Iran war. Despite demand taking a hit from higher prices, the agency forecasts a shortfall of 1.8 million barrels per day this quarter, more than double its earlier projections.

The IEA attributes the increased deficit to 'renewed hostilities and maritime disruptions' in the Middle East, which have derailed production recovery efforts in the region. As a result, the world is likely to face a wider oil supply gap in 2026 compared to any year in the past five years.

The agency's monthly report highlights the challenges posed by escalating tensions and disruptions in key oil-producing regions. The IEA advises major economies on energy policy, and its findings underscore the need for careful planning and management of global oil supplies.