The International Energy Agency (IEA) has reported a dramatic decline in global oil inventories, falling at a rate of approximately 4 million barrels per day in March and April due to the ongoing conflict in Iran, which has effectively shut the Strait of Hormuz. This disruption has led to a total loss of 12.8 million barrels per day since February. Even if the conflict ends soon, the IEA anticipates that it will take weeks or months to restore normal supply levels through this critical shipping route. As a result, the agency has revised its oil consumption projections downward for the third consecutive month, predicting a plunge of 2.45 million barrels per day this quarter, the steepest drop since the COVID-19 pandemic. The ongoing crisis is exerting upward pressure on oil prices, with Brent crude trading above $107 a barrel. Although there are signs of a potential slowdown in inventory drawdown, particularly due to weaker demand from China, the overall outlook remains grim as the market grapples with supply shortages and soaring prices.