IEA Warns Renewed U.S.-Iran Hostilities Could Disrupt Global Oil Stock Rebuild

According to Lianhe Zaobao citing Bloomberg, the International Energy Agency (IEA) said in a monthly report released Friday, July 10, that renewed U.S.-Iran hostilities could disrupt efforts to rebuild global oil inventories later this year and underscore risks to the global economy if the conflict escalates. The IEA said global oil supply-demand conditions had begun to normalize after the U.S. and Iran reached a temporary peace agreement last month, with crude shipments in the Persian Gulf recovering to about two-thirds of normal levels, supported by record output in the United Arab Emirates, and global crude inventories posting their first increase in four months. The agency said the market had been on track to return to oversupply in the fourth quarter, with a larger surplus possible in 2027, but a new round of conflict this week—marked by attacks on multiple oil tankers and slower passage through the Strait of Hormuz—has put that outlook at risk.