The International Energy Agency (IEA) has sounded alarms regarding a historic disruption in the oil market due to the ongoing conflict in Iran. It predicts a significant drop in global oil demand and supply, marking the largest quarterly decline since the COVID pandemic. The war has already wiped out expected demand growth for 2026, with projections indicating that oil demand could contract by 80,000 barrels per day. Fuel and fertilizer prices are expected to remain high for a prolonged period, while the IEA stands ready to release additional oil reserves if necessary. The agency has called for countries to avoid energy hoarding and warned that current oil prices do not accurately reflect the crisis, with further increases likely. The situation is described as the largest energy security threat in history, with disruptions leading to the biggest jump in global energy inflation in at least 25 years.