Global Oil Inventories Drop 246 Million Barrels in 2 Months as Iran War Cuts Supply
Updated
Updated · The Guardian · May 13
Global Oil Inventories Drop 246 Million Barrels in 2 Months as Iran War Cuts Supply
15 articles · Updated · The Guardian · May 13
Global oil stocks fell by 129 million barrels in March and another 117 million in April, the fastest drawdown on record as countries tapped reserves to offset supply losses from the Iran war.
The IEA said the shortfall was severe enough that it ordered the largest release of government oil reserves in its history in mid-March.
Higher crude and fuel prices are now eroding consumption: the IEA forecasts world oil demand will shrink by 420,000 barrels a day this year to 104 million bpd.
That demand outlook is 1.3 million bpd lower than the agency expected before the Iran war, underscoring how the conflict is hitting both supply and consumption.
With strategic reserves draining fast, what is the world's real Plan B if the Strait of Hormuz stays closed?
As the worst oil shock in history unfolds, will this crisis finally force a global break from fossil fuels?
Even if the war ends tomorrow, why do experts warn the global economy won't recover for years to come?
Strait of Hormuz Disruption 2026: Global Oil Market Collapse, Emergency Reserves, and Economic Consequences
Overview
In March and April 2026, the Iran war and near-closure of the Strait of Hormuz triggered a historic oil supply crisis. Global oil markets faced a massive deficit as alternative export routes could not compensate for lost supply. This shock led to soaring prices and forced countries to seek new sources, while Russia benefited from increased exports. Governments responded by releasing strategic reserves, but these measures only provided temporary relief. As inventories depleted rapidly, the risk of further shortages and price spikes grew, highlighting the fragility of global energy systems and the urgent need for long-term solutions.