02 APRIL 2026
Middle East Share of Global Oil Supply
Saudi Arabia accounts for more than 10% of global oil production. Including Iran, Iraq and the UAE, the Middle East collectively underpins a significant share of the world’s daily energy supply – making the region’s stability inseparable from global economic stability.
Supply Shock and the Strait of Hormuz Bottleneck
The current conflict has removed more than 6 million barrels per day from the market. That figure alone would be serious. What makes it more acute is that the Strait of Hormuz – the narrow waterway through which roughly 20% of global oil supply and a substantial share of LNG passes – has been severely constrained. The Gulf’s energy supply isn’t just being cut; it’s being stranded.
Why Oil Supply Shocks Drive Global Inflation and Markets
Why does this matter? The global energy system is structurally reliant on a narrow set of producers and a single critical chokepoint. When that system is disrupted, the consequences are swift, affecting commodity prices, inflation, trade balances and financial markets simultaneously, and is difficult to offset.
Bentley Reid & Co (UK) Limited (FRN 572096) is authorised and regulated by the Financial Conduct Authority.
This communication is provided for information purposes only.
Bentley Reid believes that, at the time of publication, the views expressed herein represent fair opinion; however, no assurance can be given that any illustrated or referenced performance will be achieved or repeated. All data and graphical information are believed to be accurate at the time of capture but may be subject to change and may not reflect current conditions. Fluctuations in exchange rates may cause the value of investments to rise or fall.
Recipients considering any action based on the content of this communication should seek independent advice from a professional adviser appropriate to their individual financial circumstances. Capital is at risk, and investors may receive back less than the amount originally invested. Neither the publisher nor any of its subsidiaries or connected parties accepts any liability for direct or indirect loss arising from reliance on, or use of, the information contained in this communication.
Middle East Oil Supply Disruption – Why the Strait of Hormuz Matters to Global Markets
Indian Rupee Valuation: Risk or Opportunity?
Is India Leaving the “Fragile EM” Era Behind?
