The International Energy Agency (IEA) has released a report warning that global oil supply is shrinking at a record rate due to the ongoing war in Iran and the closure of the Strait of Hormuz, now in its third month. According to the report, global oil supply fell by 1.8 million barrels per day in April, marking a significant depletion of reserves.
The conflict, which began in early 2026, has disrupted major oil shipping routes through the Strait of Hormuz, a critical chokepoint for global oil transit. The IEA notes that this is the fastest rate of supply decline since the agency began tracking such data, with no immediate resolution in sight.
Analysts warn that continued disruptions could lead to higher oil prices and potential shortages in importing nations. The IEA has urged member countries to consider releasing strategic petroleum reserves to stabilize markets.
