Oil Shock: How Long Can World & India Absorb US-Iran War Disruption
The US-Iran war has led to one of the biggest oil supply disruptions in history, but crude prices have not seen a significant spike. However, for how long can the global economy and India absorb this shock?
According to the US Energy Information Administration (EIA), it will take until early 2027 for oil production and trade patterns to return to pre-conflict status.
The EIA also believes that oil prices will remain elevated due to the large drawdown in global inventories triggered by continued disruptions in the Strait of Hormuz.
So far, the impact has been limited because of measures taken by countries such as India and China. However, if the war doesn't end soon, the situation could worsen.
The International Energy Agency (IEA) has estimated that global oil stocks are under pressure and the scale of disruption is difficult to determine.