IEA Warns Oil Supply Shortage Worsens Amid Iran War Escalation

The International Energy Agency (IEA) has reported that global oil markets are experiencing a more severe supply squeeze than expected due to renewed escalation in the Iran war.

The world faces a shortfall of 1.8 million barrels per day this quarter, more than double earlier projections, as 'renewed hostilities and maritime disruptions' derail production recovery in the Middle East.

This deficit will likely be the widest in five years for 2026 as a whole, with stockpiles tightening again even as high fuel prices prompt the agency to deepen estimates for a decline in global oil demand this year by almost 50% to 1.6 million barrels per day.