The International Energy Agency has issued a stark warning regarding a "critical" issue in global oil supply, intensifying fears that ongoing geopolitical tensions in the Middle East could disrupt flows through the Strait of Hormuz.
The agency's assessment comes as markets remain on edge following recent military strikes and diplomatic threats involving Iran and the United States.
European equities opened lower on Thursday, with the FTSE 100 sliding into negative territory as investors digested the IEA's cautionary tone.
The benchmark index faced renewed selling pressure, reflecting broader risk aversion triggered by the prospect of sustained supply bottlenecks.
Energy stocks initially saw mixed reactions, with some names benefiting from higher crude benchmarks while others faced headwinds from broader market weakness.
The IEA's intervention underscores the fragility of global energy logistics amid escalating geopolitical risks.