- The IEA says the Iran war has resulted in the biggest-ever disruption to oil markets.
- In its latest market report, it described it as the oil market's 'largest supply disruption' in history.
- The assessment follows Wednesday's news that the IEA would release 400 million barrels of oil from strategic reserves.
The Iran war has produced the largest disruption to oil markets in history, the International Energy Agency said on Thursday.
Oil prices surged back toward $100 per barrel, fueled by attacks from the Iranian military on cargo vessels. The ongoing volatility has rocked financial markets all week as the US-Iran war continues to escalate.
"The war in the Middle East is creating the largest supply disruption in the history of the global oil market," the IEA said i its monthly market report.
Members of the International Energy Agency (IEA)have responded to these unprecedented price swings by releasing 400 million barrels of oil in an attempt to calm an undeniably unstable market, just hours before the latest Iranian attack caused oil prices to surge again.
This intergovernmental organization's members span several continents, including North America, Europe and Asia. Its leaders have made it clear that the world has never faced a crisis like this before.
"The war in the Middle East is creating the largest supply disruption in the history of the global oil market," the IEA stated in a recent report.
The outlook for supply, given the historic turmoil, is stark. The group said global supply will plummet by 8 million barrels per day in March. The war is chipping away at the oil glut that had been credited with keeping energy prices down for much of 2025.
"Disruptions are not limited to upstream production and exports, with several refineries and gas processing facilities shut down due to attacks or for safety concerns," the IEA added. "The closure of the Strait is also forcing export-oriented refineries to cut runs or shut completely as product storage tanks top up."
The Strait of Hormuz is a key global chokepoint for oil flows, which Iran has effectively kept shuttered with its latest attack on tankers on Wednesday.
The IEA's report comes a day after the group agreed to the largest-ever release of 400 million barrels of oil from strategic reserves aimed at quelling volatility. Market commentators have doubted the plan's efficacy, and prices have only spiked since the announcement.
JPMorgan analysts argued that the planned release would only likely provide temporary relief at best, making it clear they didn't see it as the best solution.
The White House on Thursday said it would suspend the Jones Act, a maritime shipping law that requires ships moving goods between US ports to be American-made, in a move to ease prices.
In its report, the IEA acknowledged that while the historic oil reserves release may have helped in the short term, it will remain a temporary solution at best until the military conflict is resolved.
"The ultimate impact on oil and gas markets and the broader economy from the conflict will depend not only on the intensity of military attacks and any damage to energy assets, but also, crucially, on the duration of disruptions to shipping through the Strait of Hormuz," it said.
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