Analysts warn refined product reserves are depleting rapidly, risking a sharp price surge amid prolonged Iran-related disruptions.
Global oil inventories are approaching exhaustion as the Iran conflict disrupts supply chains, with refined product stocks—including diesel, petrol, and jet fuel—draining at the fastest rate. Analysts highlight that reserves entered the crisis near decade-high levels but have since dwindled, leaving little buffer against further shocks.
Prior to the conflict, oil stocks were at near-record levels, but persistent disruptions in the Strait of Hormuz and attacks on key facilities have eroded this cushion. National reserves in the U.S. and China are also under pressure, amplifying concerns over a potential price spike.
The economic toll on Iran includes over 23,000 factories and firms impacted, more than 1 million jobs lost, and projections that 4.1 million more Iranians could fall into poverty. Analysts suggest diplomatic resolution hinges on addressing Iran’s core demands, including economic relief and maritime access.