IEA Slashes Oil Demand Forecast Amid Ongoing Middle East Tensions

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

The IEA predicts a drop of 2.5 million barrels per day in worldwide oil consumption compared to 2025, which is more severe than its previous forecast of 1.6 million barrels decline in August.

This downgraded forecast comes as oil prices have surged above $100 per barrel due to attacks on Iranian oil tankers and concerns over further disruptions to supply amid ongoing fighting in the Middle East.

The IEA also warned that supplies would be lower than expected due to the ongoing conflict, with a 'full recovery in supplies from Middle East producers deferred until 2027.'