Middle East war creating ‘largest supply disruption in the history of oil markets’
Vast release of emergency crude reserves fails to quell mounting fears about supply crunch, rattling markets
TL;DR
- The war in Iran is causing the "largest supply disruption in history" for oil markets.
- The IEA has warned of a deeper crisis than those in 1973 and 2022 due to Iran's blockade of the Strait of Hormuz.
- Global oil prices exceeded $100 a barrel amid Iranian attacks and fears of supply shortages.
- The IEA and US released a record 400 million barrels of emergency crude reserves, but this failed to calm markets.
- Stock markets in the US, Europe, Japan, and Australia fell following the news.
- Iran's supreme leader called for the Strait of Hormuz to remain closed, exacerbating the crisis.
- The conflict is expected to cut regional oil and gas production by at least 10 million barrels a day.
- A global oil output slump of 8 million barrels a day is forecast for the year.
- Soaring energy costs are predicted to weigh on global economic growth.