Biggest Oil Crisis in History — 8 Million Barrels a Day Nawala Dahil sa Middle East War
The world is now facing the largest oil supply disruption in recorded history, and the Philippines is bracing hard for the impact. According to the International Energy Agency, global oil supply dropped by a staggering 8 million barrels per day in March — roughly 8% of total world demand — after the US and Israel began airstrikes on Iran on February 28, effectively blocking the Strait of Hormuz.
Middle East Gulf countries including Iraq, Qatar, Kuwait, the UAE, and Saudi Arabia have slashed oil production by at least 10 million barrels per day as a result of the conflict. The IEA warned that without a rapid restart of shipping flows through the strait, these losses could get even worse. Brent crude hit $119.50 per barrel earlier this week — its highest since mid-2022.
To fight the price spike, the IEA agreed to release a record 400 million barrels from strategic stockpiles held by member nations. IEA Executive Director Fatih Birol said the decision already had a ‘strong impact’ on energy markets, pero warned that the situation remains ‘extremely critical.’
For the Philippines, the effects are already being felt. The peso hit a new record low of 59.735 against the dollar, and diesel prices are projected to breach P100 per liter as early as next week. Airlines are canceling flights, and the broader economic outlook is getting more uncertain by the day.
Despite the crisis, the IEA still expects global oil supply to rise faster than demand for the full year of 2026, partly because some Gulf producers are finding alternative export routes. But for ordinary Filipinos filling up at the pump or buying groceries, the short-term pain is real and it’s here. Source: Rappler, IEA
