Vessels at the Strait of Hormuz area seen from Musandam, Oman, June 15, 2026. Reuters-Yonhap
LONDON - The oil market will move into a significant supply surplus in 2027 after recovering from the closure of the Strait of Hormuz, the International Energy Agency said in its monthly oil market report on Wednesday.
The U.S. has announced an interim agreement to end the Iran war, which includes Iran reopening the strait and the U.S. lifting its naval blockade of Iran, potentially bringing an end to the largest oil supply disruption in history.
The war is estimated to have blocked more than 14 million barrels per day (bpd) of Middle East oil output according to the IEA.
The oil market will then fall into a significant supply surplus next year, the IEA said in its first look at 2027, as supply is set to surge by 8 million bpd while demand rises by 2 million bpd.
