The war in the Middle East is creating the biggest oil supply disruption in history, the International Energy Agency has said, a day after the agency agreed to release a record volume of oil from strategic stockpiles, Reuters reports.

Global supply is expected to drop by 8 million barrels per day in March due to the blocking of the Strait of Hormuz since February 28.

Middle East Gulf countries have cut total oil production by at least 10 million bpd — a volume equal to almost 10pc of world demand — as a result of the conflict, the IEA said in its latest monthly oil market report, adding that without a rapid restart of shipping flows these losses were set to increase.