IEA: US-Iran escalation threatens 2027 oil surplus forecast

IEA: US-Iran escalation threatens 2027 oil surplus forecast The International Energy Agency (IEA) predicts supply will expand by 7.5 million bpd next year after a 3.7 million bpd contraction this year, but that is contingent on improved Hormuz transits. "An escalation in hostilities on 7-8 July, however, clouds the outlook and could upend the forecast that sees the market flipping to a surplus next year," it said, adding that a lasting peace agreement is a "must" for oil markets to normalise, according to Reuters.