--- title: "Oil reserves eased Iran war price shock, but now they are ‘spent’, IMF says" type: "post" post_id: "13910" slug: "oil-reserves-eased-iran-war-price-shock-but-now-they-are-spent-imf-says" canonical: "https://pennyforyourthoughts2.ca/2026/07/16/oil-reserves-eased-iran-war-price-shock-but-now-they-are-spent-imf-says/" markdown_url: "https://pennyforyourthoughts2.ca/2026/07/16/oil-reserves-eased-iran-war-price-shock-but-now-they-are-spent-imf-says.md" json_url: "https://pennyforyourthoughts2.ca/2026/07/16/oil-reserves-eased-iran-war-price-shock-but-now-they-are-spent-imf-says.json" txt_url: "https://pennyforyourthoughts2.ca/2026/07/16/oil-reserves-eased-iran-war-price-shock-but-now-they-are-spent-imf-says.txt" published: "2026-07-16T20:28:08+00:00" modified: "2026-07-16T20:28:08+00:00" author: "penny2" categories: - "Uncategorized" tags: - "Iran" - "Israel" - "US" site_name: "PFYT2" publisher: "" language: "en-US" generator: "easyPress Markdown" generator_version: "1.0.6" --- **In short:** **The global economy was spared from the worst of the biggest oil shock in 50 years because of large oil reserves, according to the International Monetary Fund.** It says **lower consumption in Asia and higher oil production outside of the Gulf helped absorb further price shocks.** **What’s next?** Experts say **global oil prices are likely to increase as reserves dwindle.** **Depleted oil reserves have left economies vulnerable to soaring fuel prices as the US-Iran conflict resumes, the IMF has warned.** Before the war began, **global oil supplies were at about 2 million barrels a day above demand.** The IMF the closure of the Strait of Hormuz had not led to a “full-blown price shock” because the reserves absorbed what the market could not. It said that by the end of May **oil reserves were estimated to be about 1.2 billion barrels, which was half the level prior to the conflict.** **“That cushion, however, has been spent,**” the IMF said. ***“If the disruption were to persist at current rates, that lower bound would be reached by early 2027.***“ ***“Well before that point, prices would likely move sharply higher, as the market would effectively be operating without a safety net.”*** **Trump and Bibi look like they want to keep this one going..**