IEA Slashes Global Oil Demand Forecast Amid Middle East Tensions
The International Energy Agency (IEA) has cut its global oil demand forecast for the second time this year due to ongoing tensions in the Middle East. The agency predicts a decline of 2.5 million barrels per day in 2026 compared to 2025, up from an initial estimate of 1.6 million barrels.
The IEA attributes this revised forecast to the impasse in negotiations between the US and Iran, as well as renewed attacks in the region that have hampered oil flows. The Strait of Hormuz remains under Iranian control, while Houthi rebels in Yemen have advanced on the Bab al-Mandeb Strait.
This situation has led to a surge in oil prices, with crude futures surpassing $100 per barrel this week. Refined products such as diesel are also experiencing high prices, with US prices reaching over 200% above pre-war levels.