Iran war disrupts global energy supply, largest oil market impact: IEA

The ongoing conflict involving the United States, Israel, and Iran has intensified, leading to significant disruptions in global energy supplies. Reuters reports that the energy crisis linked to the Iran war is escalating, with major impacts on oil and LNG flows due to disruptions in the Strait of Hormuz. The International Energy Agency has described it as the largest supply disruption in global oil market history. This development comes amid heightened geopolitical tensions, which appear to be affecting the likelihood of a US-Iran diplomatic resolution. Key Takeaways Pricing suggests a decrease in the likelihood of a US-Iran deal, with market odds falling across several sub-markets. The disruption in the Strait of Hormuz is consistent with scenarios where energy security concerns could derail negotiations. Recent market movements suggest participants may view the risk of further military escalation as undermining potential diplomatic solutions. What to Watch Monitor statements from key actors, including U.S. President Donald Trump and Iranian Foreign Minister Javad Zarif, for potential shifts in diplomatic efforts. Further military actions by Israel or Iran could indicate scenario...