The ongoing U.S.-Israeli conflict with Iran has caused the largest disruption in the global oil market in history, according to a report released Thursday by the International Energy Agency. The conflict has sent oil flows through the Strait of Hormuz, a vital passage responsible for roughly one-fifth of global oil shipments, plummeting from around 20 million barrels per day to a mere trickle. Oil prices have swung wildly since the onset of the war, highlighting the fragility of supply chains amid escalating geopolitical tensions.
The Trump administration has focused on the economic implications of rising energy costs, offering measures such as naval escorts and political risk insurance for tankers navigating the Strait. In a separate move, the White House eased restrictions on India’s purchase of Russian oil to help stabilize global supply. Despite these efforts, the International Energy Agency projects that global oil output could fall by as much as 8 million barrels per day in March, compounded by direct damage to energy infrastructure in the region.
“With nearly 20 million barrels per day of crude and product exports currently disrupted and limited alternative options to bypass the world’s most critical oil transit chokepoint, producers and consumers globally are feeling the strain,” the report warned. In response, IEA member countries pledged to release 400 million barrels of oil to stabilize markets, while U.S. Central Command has carried out strikes against Iranian vessels believed to be deploying naval mines throughout the strait.
Despite the historic scale of the disruption, President Donald Trump appeared to downplay the immediate economic impact on the United States, emphasizing on Truth Social that higher oil prices benefit the nation as the world’s largest oil producer. He framed the conflict in broader strategic terms, asserting that his priority remains preventing Iran from developing nuclear weapons and threatening regional and global stability.
