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Europe faces imminent oil shortages as global stockpiles plunge, prices rise amid US-Iran tensions

Market News
18 May 2026
CNBC
View Source
Bearish
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Global oil inventories are rapidly depleting, with Europe at risk of physical shortages by the end of this month due to ongoing supply disruptions and constrained flows through the Strait of Hormuz. Despite a temporary 'veneer of stability' in oil markets, experts warn that reopening the Strait will not immediately resolve supply issues because of complex logistics delays, potentially pushing full market normalization into late 2027. Oil prices have risen sharply, with Brent crude surpassing $110 per barrel, reflecting heightened concerns amid stalled US-Iran negotiations. The situation underscores a tightening market where availability, not just price, is becoming critical.

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