The Iran war is causing the largest disruption to oil markets in history, IEA says

• The IEA says the Iran war has resulted in the biggest-ever disruption to oil markets.
• The closure of the Strait of Hormuz has sent oil prices soaring.
• The report follows Wednesday's news that the IEA would release 400 million barrels of oil from reserves.

The Iran war has produced the largest disruption to oil markets in history, the International Energy Agency said on Thursday.

"The war in the Middle East is creating the largest supply disruption in the history of the global oil market," the IEA said in its monthly market report.

Oil prices surged back toward $100 per barrel, fueled by attacks from the Iranian military on cargo vessels.

The outlook for supply, given the historic turmoil, is stark. The IEA said global supply will plummet by 8 million barrels per day in March. The war is chipping away at the oil glut that had been credited with keeping energy prices down for much of 2025.

"Disruptions are not limited to upstream production and exports, with several refineries and gas processing facilities shut down due to attacks or for safety concerns," the IEA added. "The closure of the Strait is also forcing export-oriented refineries to cut runs or shut completely as product storage tanks top up."

The IEA's report comes a day after the group agreed to the largest-ever release of 400 million barrels of oil from strategic reserves aimed at quelling volatility. Market commentators have doubted the plan's efficacy, and prices have only spiked since the announcement.

JPMorgan analysts argued this week that any release of oil reserves would likely provide temporary relief at best, and the main issue for the market is energy flows through the Strait of Hormuz.

The Strait is a key global chokepoint that handles 20% of the world's oil flows, and which Iran has effectively kept shuttered with its latest attack on tankers on Wednesday.

The White House on Thursday said it would suspend the Jones Act, a maritime shipping law that requires ships moving goods between US ports to be American-made, in a move to ease prices.

In its report, the IEA acknowledged that while the historic oil reserves release may have helped in the short term, it will remain a temporary solution at best until the military conflict is resolved.

"The ultimate impact on oil and gas markets and the broader economy from the conflict will depend not only on the intensity of military attacks and any damage to energy assets, but also, crucially, on the duration of disruptions to shipping through the Strait of Hormuz," it said.