Oil market risks ‘red zone’ by summer, IEA chief warns
The head of the International Energy Agency, Fatih Birol, has warned that the global oil market could enter a 'red zone' by summer if the ongoing Middle East conflict does not improve. He highlighted that while there was a surplus of oil before the war, stocks are rapidly depleting due to halted tanker traffic through the Strait of Hormuz. Birol emphasized that it will take significant time for production and refining capacities to recover to pre-war levels.
- ▪Fatih Birol warned of a potential 'red zone' for oil supplies by July or August.
- ▪Iran has halted tanker traffic through the Strait of Hormuz, impacting oil and gas supplies.
- ▪The IEA has coordinated the release of 426 million barrels from emergency stocks, with 164 million already drawn.
Opening excerpt (first ~120 words) tap to expand
Oil market risks ‘red zone’ by summer, IEA chief warnsSign up now: Get ST's newsletters delivered to your inboxIEA chief Fatih Birol warned that it will take “a lot of time” for production and refining capacity to return to pre-war levels.PHOTO: AFPPublished May 22, 2026, 06:48 AMUpdated May 22, 2026, 06:48 AMLONDON - The world oil market risks entering a “red zone” by the upcoming summer season should there be no progress on ending the Middle East war, the head of the International Energy Agency warned on May 21.“We may be entering the red zone (on supplies) in July or August if we don’t see that there are some improvements in the (war) situation,” Mr Fatih Birol said at the Chatham House think tank in London.Iran has effectively halted tanker traffic through the Strait of Hormuz in…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Straits Times — World.