Iran War Shocks Global Oil Markets, Crude Supplies Cut by 13 Million Barrels Daily

Key Points

• Global crude supplies reduced by 13 million barrels per day
• Oil demand destruction deepening as Strait of Hormuz remains closed
• Long-term price surge projected despite short-term demand decline

Full Details

Reuters reports that aggregate worldwide oil consumption is plummeting due to the Iran war, which has slashed global crude supplies by 13 million barrels per day (12% reduction) since the conflict began on February 28. This supply shock is driving oil prices higher, with the long-term impact potentially benefiting oil producers despite short-term demand destruction. The closure of the Strait of Hormuz has exacerbated the supply crisis, raising questions about when shipping routes might normalize. Industry experts warn that the prolonged disruption could reshape global energy markets for years.