IEA Warns of Oil Price Surge Risks and Global Consumer Burdens

JAKARTA, KOMPAS.com — The International Energy Agency (IEA) has released its latest report, spotlighting various options to ease the pressure of oil prices on consumers.

This comes alongside global energy supply disruptions due to conflicts in the Middle East.

In the report, the IEA assesses that the current supply crisis has the potential to become one of the largest disruptions in the history of the global energy market.

The IEA states that the conflict in the region has caused several major producers to significantly reduce oil production.

Quoted from Arab News, Sunday (22/3/2026), overall, Gulf countries have cut oil production by around 10 million barrels per day (bpd), equivalent to nearly 10 percent of global oil demand.

This situation is worsened by obstacles to crude oil shipment flows, resulting in a projected drastic decline in global supply.

The sharp rise in world oil prices directly impacts energy cost burdens for households and the business sector.

In its report, the IEA states that this pressure could accelerate inflation, reduce consumer purchasing power, and slow the fragile global economic recovery.

Although the global oil market was previously expected to be in surplus in 2026, prolonged supply disruptions could quickly turn that balance into a deficit.

This revision reflects the significant impact of geopolitical conflicts on producers’ ability to maintain output and ensure smooth energy distribution to international markets.

In its latest report, the IEA outlines several policy measures that governments can take to dampen the oil price pressure on consumers.

One of the main steps is the coordinated use of strategic oil reserves.