The International Monetary Fund says the global oil market managed to withstand one of the biggest supply disruptions in decades after war broke out in West Asia. Even with the effective closure of the Strait of Hormuz, crude prices remained in a relatively steady $90 to $100 per barrel range instead of surging uncontrollably.
According to the report, the market was able to absorb the shock because several cushions were still in place. Lower demand was one of the factors that helped limit the pressure, allowing the disruption to be offset without an immediate and sustained price spike.
But the IMF also warned that those protections are being used up. Oil stocks and other market buffers are running thinner, leaving less room to handle any fresh supply losses or a longer-lasting disruption.
That means the market may have shown resilience so far, but its ability to keep absorbing new shocks is becoming more limited. If tensions persist or supply conditions worsen, the balance that kept prices stable could become harder to maintain.
