IEA warns that escalating Middle East conflicts increase energy supply risks, but says the crude oil market still has multiple buffer factors supporting it.

(1) Fatih Birol, Executive Director of the International Energy Agency (IEA), issued a statement on July 21, highlighting that the recent escalation of hostile actions against energy infrastructure in the Strait of Hormuz and surrounding areas has significantly intensified global concerns over energy supply security and market outlook. (2) Birol particularly emphasized that the threats faced by the Bab el-Mandeb Strait, a crucial alternative passage bypassing the Strait of Hormuz, are also becoming increasingly severe, further heightening market tension. (3) Despite the above risk warnings from IEA, the headline also notes that the crude oil market remains supported by multiple cushioning factors.