A sharp decline in global oil reserves last month, tied in part to the ongoing Iran conflict, has sparked growing worries about fuel availability and rising prices as the summer travel season approaches.

New figures from S&P Global Energy, cited by the Financial Times, show that worldwide crude inventories dropped by close to 200 million barrels in April, equal to about 6.6 million barrels per day. The steep fall is attributed largely to escalating tensions in the Middle East, which have interfered with shipping lanes and energy facilities.

“This is massive; it is far above the usual range,” Jim Burkhard, head of crude research at S&P, told the Financial Times, warning that “an inevitable market reckoning is coming.”

The plunge in reserves occurred even as global demand weakened significantly, with consumption reportedly declining by around 5 million barrels per day—marking the most pronounced drop outside the COVID-19 period.

Experts say the supply disruptions linked to the Iran conflict have outweighed the effects of reduced demand, placing additional strain on already tight markets.

Oil markets have faced volatility since late February, when joint US and Israeli strikes on Iran led to a wider regional confrontation. In response, Tehran took steps to interfere with shipping through the Strait of Hormuz, a critical passage that carries about 20 percent of the world’s oil and gas exports.

The Trump administration has sought to contain the fallout through Project Freedom, a US-led naval initiative aimed at safeguarding commercial vessels passing through the strait and maintaining the flow of global trade.

This week, however, President Trump indicated a potential shift toward diplomacy, announcing a temporary halt to the operation to allow renewed efforts at reaching an agreement with Iran.

“Great Progress has been made toward a Complete and Final Agreement,” Trump wrote on Truth Social while emphasizing the United States would continue pressuring Iran economically.

Oil prices initially spiked amid fears that disruptions in the strait would persist, but eased somewhat on Wednesday, according to the BBC, after Trump’s remarks raised expectations that a deal might be within reach.

Brent crude prices dipped below $110 per barrel after earlier surging by more than 6 percent during the latest escalation.

Despite the slight easing in prices, analysts caution that the situation remains unstable and could deteriorate further.

Goldman Sachs estimates that global supplies of refined fuels have dropped to roughly 45 days of available inventory, with especially sharp reductions reported in Asia and Africa.

In the United States, gasoline stockpiles are expected to fall to historic lows during the peak summer driving months.

“The speed of depletion and supply losses in some regions and products is concerning,” Goldman researchers warned.

Governments around the world have already begun taking steps to shore up energy security. Australia has announced plans to invest heavily in boosting fuel reserves, Norway is increasing oil output, and Qatar is working to conserve its domestic energy capacity, according to Semafor.

Even as fuel prices climb to around $4.50 per gallon in some parts of the United States, demand from American drivers has remained steady, adding further pressure on limited supplies.

Burkhard cautioned, “The worst of the crisis is ahead of us.”