The International Energy Agency (IEA) advised citizens on Friday to avoid air travel and work from home. This warning follows the largest supply disruption in global oil market history. A conflict between a U.S.-Israeli coalition and Iran effectively closed the Strait of Hormuz.
The closure halted approximately 20 million barrels per day. This volume represents about 20% of global oil consumption. Brent crude prices surged to $120 per barrel. Prices previously averaged $70 per barrel.
The IEA initiated its largest emergency stock release in its 50-year history. The agency made 400 million barrels available to the market. IEA Executive Director Fatih Birol warned that economic impacts will become increasingly severe without a quick resolution.
The agency recommended a 10-point action plan to reduce consumption. Measures include lower highway speed limits and increased public transport use. Analysts warn oil prices could reach $200 per barrel if the disruption continues.