IEA Warns of Largest-Ever Oil Supply Disruption as Middle East Conflict Escalates

The Middle East conflict has led to the largest-ever oil supply disruption in history, according to the International Energy Agency (IEA).

In its latest monthly oil market report, the IEA said that global oil supply is expected to drop by 8 million barrels per day in March due to the blocking of the Strait of Hormuz.

This represents a volume equal to almost 8% of world demand and is the largest disruption since the agency began tracking data in 1980.

The IEA added that supply could rise in April as some Middle East Gulf producers use alternative export routes to bypass the Strait of Hormuz, but warned that production would still take weeks or even months to return to pre-crisis levels.

The agency also agreed to release a record 400 million barrels of oil from strategic stockpiles to combat a spike in prices since the start of the war on Iran.