Oil Market Could Enter 'Red Zone' by July as Stocks Dwindle Ahead of Summer Travel Season, IEA Chief Says The International Energy Agency's (IEA) warning that oil markets could soon enter a "red zone" has sent shockwaves through global commodity circles.
The agency's executive director, Fatih Birol, has cautioned that if the Strait of Hormuz remains closed, oil markets may be entering the red zone in July or August – just as demand surges during the summer travel season.
The Strait of Hormuz is a critical chokepoint for global oil trade, with over 20% of the world's crude oil and liquefied natural gas passing through its waters.