New Delhi, March 12 -- The International Energy Agency (IEA) said on Thursday the Middle Eastern conflict is generating the "largest supply disruption" in the annals of the worldwide petroleum market, as Tehran's grip on regional inventories compels Gulf nations to curtail output.

In its market report, the IEA stated crude extraction was presently reduced by at least 8.0 million barrels daily. The struggle, sparked on February 28 by American-Israeli strikes on Iran, is obstructing the world economy's fuel supply and eroding manufacturing potential. The hostilities have seen Iran intensify its blockade on the Strait of Hormuz, through which twenty percent of global crude travels, effectively nearly closing it entirely.

The IEA reported c...