The International Energy Agency reported in its monthly report issued on Thursday, March 12, 2026, that the countries of the Arabian Gulf region were forced to reduce their oil production by no less than 10 million barrels per day, due to the closure of the “Strait of Hormuz.”
The agency indicated that the movement of crude oil and petroleum derivatives through the Strait has witnessed a significant decline, from about 20 million barrels per day before the start of the war to an almost complete halt at the present time. With storage capacity reaching its maximum, the Gulf countries had no choice but to reduce production by such a large amount.
The agency also warned that the military escalation in the Middle East is leading to the largest supply disruption in the history of the global oil market, and indicated that these losses may increase if shipping traffic through the strait is not resumed as soon as possible.
Regarding global production expectations for the year 2026, the agency reduced its estimates of production growth by 50%, to reach only “1.11 million barrels per day,” after previous expectations indicated the possibility of an increase of “2.39 million barrels per day,” and thus the total expected global production for this year will stabilize at “107.23 million barrels per day.”
