IEA Cuts Oil Demand Forecast Amid Ongoing Middle East Tensions

The International Energy Agency (IEA) has revised downward its global oil demand and supply forecast for 2026, citing ongoing tensions in the Middle East.

In its latest report, the Paris-based agency warned that the 'impasse in negotiations between the United States and Iran' and renewed attacks in the region would hamper the normalization of oil flows.

The IEA now predicts a 2.5 million barrels per day decline in global oil consumption for 2026 compared to 2025, a sharper drop than its previous forecast of 1.6 million barrels per day in August.

Oil prices have surged above $100 per barrel this week due to attacks on Iranian oil tankers and concerns about further disruptions to supply amid the ongoing fighting in the Middle East.