BAKU, Azerbaijan, June 23. As tensions escalate in the Gulf following Israel’s military strikes on Iran, the International Energy Agency (IEA) has reaffirmed that global oil markets remain adequately supplied, but warned it is prepared to act if disruptions occur.
In a comment provided to Trend, the IEA stated: "The IEA is actively monitoring the situation. At present, oil markets are well supplied, but the IEA stands ready to act if needed".
This comes amid growing concern over potential energy supply disruptions in the region. IEA Executive Director Fatih Birol earlier voiced concern about the possible fallout from Israel’s actions, specifically their impact on global energy flows. "The IEA oil security system has over 1.2 billion barrels of emergency stocks and has proved vital to safeguarding the world economy," Birol wrote on his X account.
Meanwhile, Iran’s parliament may vote in favor of closing the Strait of Hormuz, a critical chokepoint for global energy supplies. The final decision, however, rests with the country’s Supreme National Security Council. The IEA has warned that even a temporary closure could carry severe consequences for oil and gas markets worldwide.
The Strait of Hormuz handles nearly 25% of global oil trade and is central to the export capabilities of several Gulf producers. It also serves as the main route for nearly all of OPEC+ spare production capacity. A disruption could therefore send shockwaves through international markets.
Iran, which produces approximately 4.8 million barrels of oil per day, exports around 2.6 million barrels daily - including 1.7 million barrels per day of crude and condensate, mostly to China, despite ongoing U.S. sanctions. The country also ships about 800,000 barrels per day of refined products, including fuel oil, LPG, and naphtha.
Meanwhile, Israel’s recent strike on the South Pars gas fieldc - one of the world’s largest - prompted Iran to temporarily suspend part of its gas production. The field has a daily capacity of 2 billion cubic meters of gas and yields about 75,000 barrels of condensate. In a related move, Israel also shut down more than 60% of its domestic gas output, including production from the Leviathan field, citing security concerns.