April 22, 2026 | Oil Markets | Global Economy | IEA | Dnn247.com
The decline is linked to restrictions on tanker movements through the Strait of Hormuz and ongoing attacks on energy infrastructure in the Middle East.
Production from OPEC+ alone fell by 9.4 million barrels per day in a single month.
In response, the International Energy Agency launched its largest-ever coordinated release of emergency oil stocks. The move aims to stabilize markets while diplomatic efforts continue.
Despite this, prices remain volatile. Brent crude has risen above $100 per barrel and reached $104 intraday on Wednesday.
The spike followed the seizure of two commercial vessels by the Islamic Revolutionary Guard Corps in the Strait of Hormuz
Refinery operations are deteriorating across the globe. Middle Eastern and Asian refineries have collectively cut processing runs by around 6 million barrels per day in April as feedstock shortages bite. Refining margins surged temporarily as middle distillate cracks reached all-time highs, producing a paradoxical spike in diesel and jet fuel prices even as crude supply tightens.
The International Energy Agency says reopening the Strait of Hormuz is critical to easing pressure on energy supply, prices, and the global economy.
However, this is still not enough to replace Hormuz capacity..
Energy Secretary Chris Wright told US media on Sunday that US gasoline prices below $3 per gallon are unlikely before next year, even with a peace deal.
The crisis is also boosting investment in US LNG export infrastructure, as American firms aim to take market share from disrupted Qatari suppliers.
Analysts warn that even a ceasefire agreement will leave structural damage to Gulf energy infrastructure that will take years to repair, keeping global energy prices elevated well beyond the immediate conflict.
