MOSCOW, January 18. /TASS/. Geopolitical tensions in the Middle East, which accounts for one-third of the world’s seaborne oil trade, bear risks for supplies on key routes, the IEA (International Energy Agency) said in its January Oil Market Report.

Rising geopolitical tensions in the Middle East had markets on edge at the start of 2024, the agency stressed. "US and UK airstrikes on Houthi targets in Yemen in response to attacks on tankers in the Red Sea have raised concerns that an escalation of the conflict could further disrupt the flow of oil via key trade chokepoints," the IEA’s experts said.

A rising number of ship owners are diverting cargoes away from the Red Sea, the agency noted.

"At the start of 2024, the risk of global oil supply disruptions from the Middle East conflict remains elevated, particularly for oil flows via the Red Sea and, crucially, the Suez Canal. In 2023, roughly 10% of the world’s seaborne oil trade, or around 7.2 mb/d of crude and oil products, and 8% of global LNG trade passed through this major trade route. The main alternative shipping route around Africa’s Cape of Good Hope extends voyages by up to two weeks - adding pressure on global supply chains and boosting freight and insurance costs," the report reads.