The International Energy Agency (IEA) has warned that escalating hostilities in the Middle East are heightening risks to global energy security, with growing concerns over oil and natural gas supplies as tensions affect the Strait of Hormuz and regional energy infrastructure.

In a statement, Fatih Birol, IEA Executive Director, said the worsening security situation, combined with threats to the Bab el-Mandeb Strait, an increasingly important alternative shipping route, has intensified uncertainty surrounding global energy markets and security of supply.

Despite the heightened risks, Birol noted that oil markets continue to benefit from several stabilising factors.

Gulf producers, particularly Saudi Arabia and the UAE, are maintaining significant export volumes through alternative routes that bypass the Strait of Hormuz, while some shipments continue to transit the waterway.

Although Gulf exports have declined from their late-June peak, they remain well above levels recorded between early March and mid-June.

Additional support has come from increased oil exports by producers outside the Gulf, including the United States, Brazil, Venezuela and Kazakhstan, helping offset some regional supply disruptions.

On the demand side, China has contributed to market stability by cutting crude oil imports by nearly 50 per cent compared with pre-conflict levels, easing pressure on global importance of emergency stock releases by its member countries.

Since announcing a coordinated action on March 11 to make 400 million barrels of oil available to the market, approximately 290 million barrels have already been released, with further volumes continuing to enter global markets. The agency noted that supplies.

The IEA also highlighted the continued importance of emergency stock releases by its member countries. Since announcing a coordinated action on March 11 to make 400 million barrels of oil available to the market, approximately 290 million barrels have already been released, with further volumes continuing to enter global markets.

The agency noted that member countries still retain substantial emergency reserves, including more than one billion barrels of government-controlled stocks.

However, the IEA cautioned against complacency, warning that commercial oil inventories continue to decline and refined fuel markets remain under greater strain than crude oil markets.

While crude supplies have improved, refinery activity has not kept pace, leaving diesel and gasoline markets significantly tighter.

Natural gas markets also remain vulnerable. Increased liquefied natural gas (LNG) exports from the United States and Canada have replaced around 70 per cent of the supply lost through the Strait of Hormuz.

Nevertheless, the agency warned that any prolonged disruption to Gulf LNG exports could tighten markets further, particularly in Europe as it seeks to replenish gas storage ahead of winter.

The IEA stressed that a lasting resolution to the conflict, including the full and unconditional reopening of the Strait of Hormuz, will be essential to prevent further deterioration in global energy security and maintain stability in international energy markets. -OGN/TradeArabia News Service