Middle East Hostilities Spark Global Oil Deficit Warning

The International Energy Agency (IEA) has warned that hostilities in the Middle East will widen the global oil deficit, exacerbating supply chain disruptions and fuel price volatility.

According to the IEA, the ongoing conflicts in the region have already led to a significant decline in oil production, with the Organization of the Petroleum Exporting Countries (OPEC) forecasting a 1.2 million barrel per day reduction in output by the end of the year.

The agency warned that this shortage will be particularly severe for India and other major oil-importing nations, which rely heavily on Middle Eastern crude to meet their energy needs.