The war in the Middle East is now causing the "largest supply disruption in the history of the global oil market."
That’s according to a new report out Thursday from the International Energy Agency.
“What we have today is the biggest supply crunch ever by a country mile,” said Neil Atkinson, former head of the Oil Markets Division at the International Energy Agency.
The heart of the problem is the “near standstill” in the Strait of Hormuz, where about 20% of the world’s oil supply normally passes through daily.
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The IEA announced its largest ever oil release Wednesday, but that hasn’t calmed concerns in global energy markets.
“It doesn’t come even close to offsetting the loss of supply. So, in fact, prices could well go up," said Atkinson.
The price of a barrel of oil briefly topped $100 again Thursday, up more than 30% from just two weeks ago.
Meanwhile Iran is ramping up its attacks on oil tankers in the region. Video from Iranian state television appears to show a vessel that was hit in the Persian Gulf off the coast of Iraq.
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The continued disruption from the war is sending gas prices soaring in the U.S., and the price of airline tickets could be next. The new report warns diesel and jet fuel markets are especially vulnerable.
“Airlines pretty much everywhere in the world are increasing their fares or fuel surcharges or both to account for the higher cost of jet fuel,” said travel industry analyst Henry Harteveldt.
