IEA Says Gulf Oil Output Has Dropped 14 Million BPD as Hormuz Closure Deepens Crisis
Updated
Updated · The New York Times · May 13
IEA Says Gulf Oil Output Has Dropped 14 Million BPD as Hormuz Closure Deepens Crisis
13 articles · Updated · The New York Times · May 13
More than 14 million barrels a day of Persian Gulf oil output is now offline versus prewar levels, the IEA said, draining global inventories at a record pace.
Fatih Birol said the energy crisis will not end until the Strait of Hormuz fully reopens, warning the economic damage is still building even if governments try to cushion the shock.
The agency has already coordinated a 400 million-barrel emergency stock release—the largest in its history—and Birol said further releases remain possible.
About 40 countries are also following IEA demand-cutting advice, including subsidizing public transport and encouraging work from home, as higher energy costs spill into fertilizer and food prices.
The latest assessment builds on the IEA's earlier warning that the US-Israel-Iran war has created the biggest oil supply disruption on record and could leave the market undersupplied through 2026.
Beyond oil, is the Hormuz closure about to trigger a global food and technology supply crisis?
As the UAE exits OPEC to maximize future output, is this oil crisis accelerating the end of the fossil fuel era?
With reserves dwindling and diplomacy failing, what is the world's real plan if the Strait of Hormuz stays closed?
2026 Middle East Oil Crisis: Supply Shocks, Economic Turmoil, and the Race for Energy Security
Overview
In May 2026, the failure of U.S.-Iran peace talks led to a rapid escalation of conflict in the Middle East. The U.S. Navy imposed a blockade on Iran’s ports, preventing ships from passing through the vital Strait of Hormuz. This action triggered a global energy crisis, causing crude oil prices to soar and raising geopolitical risk premiums. Earlier U.S.-Israel strikes on Iran had already heightened market concerns about supply disruptions. The crisis exposed deep vulnerabilities in global energy security, forcing nations to confront the risks of overdependence on critical transport corridors and prompting urgent calls for long-term resilience and diversification.