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.

British equities opened lower on Tuesday with the ongoing hostilities between Iran and Israel weighing on market sentiment, and causing an investor shift to safe-haven assets.

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.

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.

President Donald Trump has repeatedly demanded the Federal Reserve slash interest rates. But Fed officials have stood pat, waiting to see how his administration’s sweeping policy changes affect the economy first.

The costs of chartering tankers to move oil from the Middle East to Asia have climbed and ship bookings have slowed as the Israel-Iran conflict fuels worries of potential disruptions, industry sources told Reuters on Monday.

Crude oil futures finished down 1.7% to $71.77 a barrel, with oil under pressure as the latest source of turmoil in the Middle East may meet a quick conclusion.