Oil markets nearing ‘red zone’ as holiday season nears, warns IEA chief
The International Energy Agency (IEA) chief, Fatih Birol, warned that oil markets are approaching a 'red zone' due to dwindling stocks and rising demand ahead of the summer travel season. He emphasized the need for a full reopening of the strait of Hormuz to alleviate the energy shock caused by the Iran war. Birol also noted that the geopolitical landscape is heavily influencing the energy sector, with potential long-term impacts on global oil supply and pricing.
- ▪Oil markets are expected to enter a 'red zone' by July and August due to low reserves and increased demand.
- ▪Fatih Birol suggested that IEA members could release more strategic oil reserves to address the situation.
- ▪He highlighted that the ongoing geopolitical issues are significantly affecting the energy sector and oil supply.
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Fatih Birol said a full reopening of the strait of Hormuz could draw a line under the the Iran war energy shock. Photograph: Majid Asgaripour/ReutersView image in fullscreenFatih Birol said a full reopening of the strait of Hormuz could draw a line under the the Iran war energy shock. Photograph: Majid Asgaripour/ReutersIranOil markets nearing ‘red zone’ as holiday season nears, warns IEA chiefSurging demand, low reserves and reduced Middle East exports predicted to cause global crunch by AugustPatrick Wintour Diplomatic editorThu 21 May 2026 12.10 EDTLast modified on Thu 21 May 2026 12.11 EDTSharePrefer the Guardian on GoogleOil markets will enter “red zone” by July and August as stocks dwindle before the summer travel season amid a shortage of fresh oil exports from the Middle East, the…
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