IEA predicts oil shortages in 2026
The International Energy Agency predicts that the oil supply crisis will worsen in 2026 due to ongoing tensions in the Middle East, particularly the war in Iran and delays in restoring oil flows from the region until 2027, leading to higher fuel prices. The report stated that oil inventories have played a crucial role in balancing the market; however, their decline combined with refineries operating at maximum capacity increases the need to resolve conflicts in the Middle East and address the Russia-Ukraine war. Attacks on shipping routes in the Middle East, notably the Strait of Hormuz, have caused oil prices to reach the highest levels in four months, with forecasts indicating extended supply disruptions and rising prices. Futures contracts for Brent and West Texas Intermediate have seen significant weekly increases, and concerns continue to grow over escalating conflicts, which could sustain market disruptions into 2027.
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