Reuters: World faces potential largest oil crisis in history

The world is expected to face the largest oil crisis in history in 2026 due to the war in the Middle East, according to the International Energy Agency (IEA), as reported by Reuters.

In its monthly oil market report, the agency said supply this year will decline by 1.5 million barrels per day amid strikes on energy infrastructure in the Middle East and Iran’s de facto closure of the Strait of Hormuz, both of which have negatively affected oil production and exports.

The agency described the Middle East war as the largest disruption in oil supply in history, noting that it has “completely reshaped global oil consumption prospects.”

According to the IEA, in 2026 supply will exceed demand by only 410,000 barrels per day, compared to a surplus of 2.46 million barrels per day projected last month.

Attacks on energy facilities and the effective closure of the Strait of Hormuz have led to a loss of 10.1 million barrels per day in supply in March, with the figure expected to rise by another 2.9 million barrels per day in April.

The projected decline in demand of 1.5 million barrels per day in the second quarter of 2026 would mark the deepest contraction since the beginning of the COVID-19 pandemic.

As shortages and high prices persist, demand reduction is expected to spread further, the IEA said, adding that the most significant declines in oil consumption have so far been recorded in the Middle East and Asia-Pacific region, particularly in naphtha, liquefied petroleum gas, and aviation fuel.

By Jeyhun Aghazada