The war in the Middle East, which has paralyzed the Strait of Hormuz and disrupted global oil transport, is causing the largest disruption of oil supply in history, warns the International Energy Agency (IEA).
According to a report released Thursday by the IEA, Gulf countries are currently cutting production by at least 10 million barrels per day due to the Strait of Hormuz blockade, marking the largest disruption ever recorded in the global oil market.
Crude production has dropped by at least 8 million barrels per day, with an additional 2 million barrels of petroleum products, including condensates, halted. The agency highlights significant reductions in Iraq, Qatar, Kuwait, the United Arab Emirates, and Saudi Arabia.
Before the conflict, roughly 20 million barrels per day of crude and petroleum products passed through the strategic Strait of Hormuz. Today, these flows have dwindled to a thin trickle.
The IEA estimates that global oil supply could fall by 8 million barrels per day in March. Production losses in the Middle East are expected to be partially offset by increased output from non-OPEC+ members, Kazakhstan, and Russia.
