New Delhi, April 16 -- The ongoing Iran conflict has sharply reversed the global oil market balance, wiping out last year's surplus and pushing the market into a deficit in early 2026, according to a report by YES Securities.

The report noted that the oil market has "shifted decisively from a position of sizable surplus in 2025 to a materially higher deficit so far in 2026", primarily due to supply disruptions triggered by the conflict. Significant production shut-ins across key oil-producing regions have eroded the buffer that previously kept prices stable.

Before the conflict, global oil markets were comfortably oversupplied, with surplus averaging 2.3 million barrels per day (mbpd) in 2025. However, disruptions intensified in recent ...