Iran War Oil Supply Disruption Surpasses All Previous Crises

A recent conflict between the US and Israel on Iran has caused the largest oil supply disruption in history, surpassing previous crises such as the 1973 Arab oil embargo and the Iranian Revolution. The International Energy Agency (IEA) reports that the daily output loss is over 12 million barrels per day, equivalent to 11.5% of global oil demand.

The Iran war has also affected natural gas production, with Qatar shutting down about a fifth of its liquefied natural gas production. The world consumes more gas than ever before, and the current disruption extends beyond crude and gas into fuel markets, including jet fuel and diesel.

According to Reuters calculations, the current conflict has resulted in an estimated 624 million barrels lost from the market over a 52-day period. Even if a peace deal is reached quickly, supply disruptions are expected to persist for months and years to come.