India is accelerating domestic oil and gas exploration following disruptions in the Strait of Hormuz. The country plans to bid out 250,000 sq km of unexplored areas to bolster its modest global production.
The IEA predicts a potential oil surplus in 2027 due to a surge in supply volumes following a resolution to the Iran conflict, despite a recent erosion of global demand. Oil prices have fallen to a three-month low.
Iran's armed forces are prepared to retaliate after President Trump rejected Tehran's ceasefire proposal, escalating regional tensions. The dispute over the Strait of Hormuz, a critical oil route, has already caused significant energy supply shocks and threatens global food security, with the UN warning of a potential humanitarian crisis.
The U.S.-Iran war and subsequent energy supply disruptions have prompted European nations to reconsider nuclear power as a vital, domestic energy source to ensure security and reduce reliance on volatile imports.
The World Bank warned Wednesday that the US-Israeli war on Iran has triggered the biggest global energy supply shock on record, with attacks on Strait of Hormuz infrastructure cutting oil supply by about 10 million barrels per day. Energy prices will jump 24% to their highest since 2022, while overall commodity costs rise 16%, with fertilizer prices up 31% and metals hitting record highs. Under a severe disruption scenario, oil could average $115 per barrel.
