IEA Slashes Global Oil Demand Forecast Amid Middle East Tensions
The International Energy Agency (IEA) has slashed its global oil demand forecast for the second time this year, citing ongoing tensions in the Middle East as a major contributor to the decline.
In its latest monthly report, the Paris-based agency warned that supplies will not return to normal until 2027 due to the 'impasse in negotiations between the United States and Iran' and renewed attacks in the region.
The IEA predicts global oil consumption will drop by 2.5 million barrels per day in 2026 compared to 2025, a greater decline than its previous forecast of 1.6 million barrels.
Oil prices have surged back above $100 per barrel this week due to attacks on Iranian oil tankers and concerns over further disruptions to supply amid ongoing fighting in the Middle East.