🛢️ IEA Warns of Rapidly Falling Global Oil Stocks Amid Middle East Conflict

The International Energy Agency (IEA) has warned that global commercial oil inventories are depleting rapidly due to ongoing supply disruptions linked to the conflict involving Iran, Israel, and the US, despite coordinated strategic reserve releases. • Global Stock Depletion: Commercial inventories are declining at a record pace. While the IEA notes there are still several weeks of supply left, emergency reserves "are not endless." • Supply Disruptions: Tanker traffic through the Strait of Hormuz—a critical global energy shipping route—remains effectively halted by Iran following US and Israeli strikes in late February, driving oil prices sharply higher. • Emergency Response: IEA’s 32 member countries have coordinated a massive release of 426 million barrels from emergency reserves, with approximately 164 million barrels already drawn down. • Downstream Impact: Concerns over fuel shortages are intensifying ahead of the northern hemisphere summer travel season, with airlines warning of potential jet fuel shortages within weeks. • Geopolitical Strain: Diplomatic efforts remain stalled, with US President Donald Trump warning of severe consequences for Iran if a peace agreement is not reached amid fragile truce efforts. _Context for Sri Lanka_: As a net oil importer, Sri Lanka remains highly vulnerable to these escalating global energy prices and supply shocks, which typically exert direct pressure on national foreign exchange reserves and domestic fuel pricing.