Commodities
IEA Slashes Global Oil Demand Forecast Amid Ongoing Iran War
The International Energy Agency (IEA) has slashed its global oil demand forecast for 2026, predicting a drop of 2.5 million barrels per day compared to 2025.
This downward revision is due to the ongoing Iran war and the impasse in negotiations between the US and Iran, which will 'hamper the normalisation of oil flows.'
The IEA warns that supplies will not return to normal until 2027, with the Strait of Hormuz remaining under Iranian control and attacks on oil tankers driving up prices.
Oil prices have surged above $100 a barrel this week due to concerns over supply disruptions, while UK gas prices have reached a near four-year high, sparking fears of soaring energy costs over winter months.