IEA warns of oil contraction

The global energy landscape has been fundamentally upended by the conflict in the Middle East, according to the latest report from the International Energy Agency.

March saw global oil production plunge by over 10 million barrels per day, leading to a projected demand contraction of 80,000 barrels per day for the full year.

The agency warned that the closure of the Strait of Hormuz represents the largest energy security threat in history, with no new shipments loaded in April.

While some production could resume quickly if the war ends, the economic fallout is already being felt across industrial and aviation sectors worldwide.