The International Energy Agency on Thursday said the war in the Middle East is “creating the largest supply disruption in the history of oil markets” as crude prices spiked again and tankers came under fire in the Gulf region.
The 32-member agency said oil flows through the Strait of Hormuz, a critical artery near Iran, have slowed from 20 million barrels a day to a “trickle.”
Its monthly report, published Thursday, projected the global oil supply would plunge by 8 million barrels per day in March.
The price of Brent crude oil was flirting with the $100-per-barrel mark early Thursday, even though the IEA agreed Wednesday to release 400 million barrels of oil from national stockpiles.
Prices rose because of new signs of turmoil in the Strait of Hormuz, which Iran is tightly controlling in retaliation for strikes that President Trump and Israel began on Feb. 28.
Three more ships were hit by projectiles – one near the United Arab Emirates and two in Iraqi waters – overnight Wednesday into Thursday after reports of three previous vessels being struck Wednesday, according to the U.K. Maritime Traffic Operations Center.
The president has said the U.S. Navy might escort oil tankers through the strait, although Energy Secretary Chris Wright said that is not possible right now.
“It’ll happen relatively soon, but it can’t happen now,” Mr. Wright told CNBC on Thursday. “We’re simply not ready. All of our military assets right now are focused on destroying Iran’s offensive capabilities and the manufacturing industry that supplies their offensive capabilities.”
He said the Navy should be able to escort tankers later this month.
“I’ll be over at the Pentagon later today. That is what the military is working on,” Mr. Wright said.
Mr. Wright said late Wednesday the U.S. is releasing 172 million barrels of oil from the Strategic Petroleum Reserve as part of the IEA effort.
Mr. Trump says the increase in oil prices is a natural byproduct of the war that will ease soon.
SEE ALSO: Trump says ‘We’ve won’ Iran war, predicts oil prices will drop despite economic turmoil
Prices are “gonna come down more than anyone understands,” he said during a visit to Ohio on Wednesday.
Still, the national average price for a gallon of gas reached $3.60 on Thursday, an increase of 22% from a month ago, according to the AAA motor club.
Democrats are trying to make the situation politically painful for Mr. Trump. They say Mr. Trump launched a war of choice that will increase costs for everyday Americans.
“He’s already created a lot more problems than this will solve — from the Strait of Hormuz blockade to his poorly planned and reckless war, Americans are the ones routinely paying the price,” Senate Minority Leader Charles E. Schumer, New York Democrat, said late Wednesday.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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