IEA Warns of Tightening Oil Supplies Amid Ongoing Disruptions

Crude oil prices closed higher on Wednesday as the International Energy Agency (IEA) predicted that global oil inventories will fall in Q3 at twice the previously estimated rate due to ongoing disruptions from the US-Iran war.

The IEA's monthly report also stated that the global oil supply deficit will worsen, despite oil demand being hit by the conflict and high prices. The Strait of Hormuz remains shut until all conditions are met, according to Iran's state-owned Islamic Republic of Iran Broadcasting (IRIB).

Pakistan suggested on Tuesday that the US and Iran were close to an arrangement to reopen the Strait, but President Trump claimed that the US has 'total control over the Hormuz Strait' and that 'we own it.'