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Supply shock: The Iran war will change the oil market forever

The Sydney Morning Herald·Stephen Bartholomeusz·19 days ago
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Opinion Senior business columnist May 14, 2026 — 11:59am There’s an increasing imbalance of global oil supply and demand as the war in the Middle East drags on . With global oil inventories depleting at a record rate to fill the gap, it could take months, if not years, to return the market to something resembling its pre-war state. According to the International Energy Agency’s latest Oil Market Report , released this week, even if the war were to end next month, it would take until the final months of the year before supply recovered to the point where it could get close to meeting demand. With inventories being drawn down so rapidly, that means more price volatility – and probably prices that remain higher for longer – even if the war, currently at a stalemate, were to end soon. There’s no quick fix for the oil market following the upheavals from the war.…

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