The International Energy Agency (IEA) warns of an unprecedented supply shock in its May Oil Market Report.
The ongoing closure of the Strait of Hormuz is depleting global oil inventories at a record pace.
The crisis has knocked more than 14 million barrels per day of crude output offline.
Global inventories fell by 129 million barrels in March.
Inventories dropped by an additional 117 million barrels in April.
Total global supply has fallen by 12.8 million barrels per day since the crisis began.
The IEA now projects a market shortfall of 1.8 million barrels per day for 2026.
This forecast marks a sharp reversal from previous estimates of a market surplus.