According to a report released by the International Energy Agency (IEA) on Thursday, the war in the Middle East is causing the largest disruption in oil markets in history. The IEA estimates that crude oil production has declined by at least eight million barrels per day due to the conflict, significantly impacting the stability of global oil supplies.

The report highlights that, in addition to the losses in crude oil production, the oil refining sector has also been hit hard, losing approximately two million barrels per day as a result of production interruptions. Such a steep decline in oil output raises concerns over potential future shortages and the subsequent economic ramifications felt globally, particularly in countries reliant on oil imports.

Evidently, the conflict has escalated with Iran closing the Strait of Hormuz in retaliation against attacks by Israel and the United States. This strategic waterway is critical, as it handles about one-fifth of the world's oil supply. The potential for further escalation could have serious implications for oil prices and global energy security, affecting economies worldwide.