IEA flags Hormuz restart as 2027 oil surplus looms

The International Energy Agency said in its monthly report that the Strait of Hormuz will reopen after a U.S.-Iran agreement, ending what it described as the largest oil supply disruption in history, at about 14 million barrels per day. Middle East producers’ capacity is expected to return gradually. The IEA forecasts global oil supply will surge by 8 million bpd in 2027 while demand rises by only 2 million bpd, leaving a significant surplus and putting pressure on crude futures and spot prices.