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Middle East War Triggers 'Largest Ever' Oil Supply Disruption Amid Strait of Hormuz Blockade
Middle East War Erupts, Warning of Oil Supply Disruptions
The International Energy Agency (IEA) announced that the war unfolding in the Middle East is causing the largest ever oil supply disruption. This announcement came just one day after an agreement was reached to release strategic oil reserves at a record level to counter supply shortages and soaring oil prices. The IEA projected that global oil supply would decrease by 8 million barrels per day in March, representing approximately 8% of total world demand.
This supply disruption is primarily attributed to the blockade of the Strait of Hormuz, which runs along the Iranian coast, since the United States and Israel began airstrikes against Iran on February 28.
Rising Oil Prices and Future Outlook
The IEA, serving as an oil supply advisory body for industrialized nations, reported a current supply shortage, contrasting with its previous warnings of a market surplus. Oil prices rose on Thursday as Iran intensified its attacks on regional oil and transportation facilities.
The IEA added that some Middle East Gulf nations have halted crude oil production of at least 10 million barrels per day, and these losses would further increase if maritime transportation flows are not quickly restored. This amplifies concerns that a prolonged conflict and the cessation of crude oil flow through the Strait of Hormuz could persist. However, the IEA predicted that supply might increase in April as some Gulf nations utilize alternative routes, and annual production would still grow faster than global demand.
*Source: YouTube: Reuters (2026-03-12)*
