In a separate report on the outlook to 2030, the IEA forecast that oil supply would continue to outstrip demand over the next five years. Global oil demand is expected to increase by 2.5mn b/d between 2024 and 2030, reaching “a plateau” of 105.5mn by the end of the decade.

Oil prices are rising as traders once again express concern about disrupted Middle East supplies as the conflict between Israel and Iran continues. The cost of crude has been highly volatile in recent sessions as the market reacts to signs of escalation and hopes for a ceasefire.

MILITARY conflict between Israel and Iran escalated over the weekend, and markets are bracing for further signals from the Middle East and Washington that will shape the market outlook in the week ahead.

If prices go up, Fed officials may be inclined to raise its benchmark rate, raising borrowing costs for businesses and consumers. That could lead to businesses to cut jobs, particularly in the high-growth tech sector, and force Americans to pull back on spending, which drives more than 70% of economic activity in the U.S.

As tensions escalate between Israel and Iran, North Texas energy experts are closely monitoring the impact on global oil markets — and warning that rising prices at the pump may not be far behind.

Global energy executives gathered in the Malaysian capital on Monday for an industry conference with an eye on the dramatic escalation in the conflict between Israel and Iran, which has fuelled worries that it could widen and disrupt supply.

Iranian missiles damaged the US embassy in Tel Aviv, escalating tensions. Israel retaliated with strikes on Iran's energy sector, while both sides continued attacks.