Middle East War Causes Record Oil Disruption

The International Energy Agency (IEA) announced on Thursday, March 12, that the ongoing Middle East war has triggered the largest oil supply disruption in global market history. Middle East Gulf countries have collectively reduced oil production by at least 10 million barrels per day (bpd), which constitutes nearly 10% of worldwide demand, according to the IEA's latest monthly oil market report. This reduction follows the IEA's decision to release a record volume of oil from strategic reserves.

This significant supply cut is a direct consequence of the conflict. The IEA warned that these losses are projected to escalate if shipping flows are not rapidly restored. The disruption's magnitude underscores the conflict's immediate and substantial impact on global energy markets.