IEA Warns of Deepening Oil Supply Shortfall Amid Middle East Tensions

The International Energy Agency (IEA) has revised its forecast for global oil supply this year, predicting a shortfall of 4.3-million barrels per day due to disruptions in the Middle East.

The agency attributed the decline to renewed hostilities in the region, including tanker attacks in the Strait of Hormuz and drone strikes affecting exports.

The IEA's July report expected a supply drop of 3.7-million bpd, but this has now been revised upwards, taking total supply to its lowest forecast for this year at 102.02-million bpd.

This would leave the global oil market with a deficit of around 1.27-million bpd, compared to an earlier estimate of 860,000 bpd.