IEA warns of oil supply disruptions due to conflict involving Iran

Fatih Birol, head of the International Energy Agency (IEA), stated that the ongoing conflict involving Iran has resulted in a daily loss of approximately 12 million barrels of oil. According to Birol, roughly 40 key energy infrastructure assets have been damaged in critical regions. The IEA expects supply disruptions to double in April compared to the levels recorded in March. A major concern is the shortage of diesel and aviation fuel, which is already affecting Asia and is projected to impact Europe by April or May. Market volatility has increased significantly, with Brent crude oil prices recording a 64% increase in March, the highest monthly rise since the 1990 Gulf War. Analysts attribute the market instability to the closure of the Strait of Hormuz and broader regional tensions. The situation remains precarious as policymakers observe the effects on global energy supplies and economic activity.