Global energy markets enter troubled waters as Iran war disrupts oil supply
Updated
Updated · Reuters · May 7
Global energy markets enter troubled waters as Iran war disrupts oil supply
9 articles · Updated · Reuters · May 7
In Toronto, IEA chief Fatih Birol said the conflict has removed millions of barrels a day, while Brent swung between $96 and above $102 on Thursday.
He said volatility would persist even if the war ends, with supply returning only gradually, and warned oil security remains a central concern.
The IEA has already released 20% of available strategic reserves and could release more, while Birol urged Canada to seek new export markets as Hormuz remains effectively shut.
Why is Canada building more oil pipelines to the US when the world desperately needs them elsewhere?
With oil supply gone, is the world ignoring the even bigger threat of a global food shortage?
Will the world's energy map be permanently redrawn after the Strait of Hormuz crisis?
May 2026 Strait of Hormuz Closure: The Largest Energy Disruption in Decades and Its Worldwide Impact
Overview
In early 2026, Iran's closure of the Strait of Hormuz halted about 20 million barrels of oil and significant LNG supplies daily, triggering a sharp surge in global oil prices. This disruption caused widespread inflation, economic shocks, and severe impacts on aviation, shipping, manufacturing, and agriculture worldwide. Efforts like the IEA's emergency oil release and countries expanding pipeline routes have provided limited relief. Meanwhile, Iran's firm control and diplomatic deadlock have stalled resolution, while global powers face political divisions and strategic realignments. The crisis is accelerating a global shift toward renewables and energy diversification to reduce reliance on vulnerable chokepoints, shaping a more fragmented and security-focused energy future.