IEA Warns of Record Oil Supply Drop from US-Iran Conflict

The International Energy Agency warned Tuesday that the ongoing conflict between the United States, Israel, and Iran has triggered the largest oil supply disruption in history, with global production plunging by 10.1 million barrels per day in March alone, reshaping energy markets and prompting countries to reassess trade partnerships for greater security.

The disruptions stem from attacks on energy infrastructure in the Middle East and Iran's closure of the Strait of Hormuz, a vital chokepoint handling about one-fifth of the world's seaborne oil flows. In response to U.S. and Israeli strikes on its territory since late February, Iran halted nearly all tanker traffic through the strait, reducing shipments from 20 million barrels per day in February to just 3.8 million in early April. The situation escalated further after peace talks between the U.S. and Iran collapsed over the weekend in Islamabad, Pakistan. U.S. President Donald Trump then announced a naval blockade of Iranian ports on Sunday, aiming to prevent Iranian tankers from transiting and to regain control of the waterway.

IEA Executive Director Fatih Birol, speaking at the Semafor World Economy forum and in meetings...