IEA warns of global oil supply disruption due to conflict
Business
The International Energy Agency (IEA) is calling out a huge disruption in global oil supplies because of the ongoing Middle East conflict.
Things escalated after US and Israeli airstrikes on Iran led to the closure of the Strait of Hormuz, a key route for shipping oil around the world.
With that waterway blocked, international supply chains are feeling the squeeze.
Gulf countries have cut back production
To help keep things moving, the IEA agreed to release a record volume of oil from strategic stockpiles.
Meanwhile, Gulf countries have cut back production by about 10 million barrels a day, almost 10% of what the world uses daily.
The IEA warns it could take weeks or even months to get things back to normal, so expect some ongoing ripple effects in energy markets worldwide.