IEA Slashes Oil Demand Forecast Amid Strait of Hormuz Closure

The International Energy Agency (IEA) has revised its forecast for global oil demand due to the ongoing closure of the Strait of Hormuz. The agency now expects a sharper decline in demand, predicting a decrease of 1.6 million barrels per day in 2026.

This is a significant drop from their previous estimate in July, which was reduced by an additional 510,000 barrels per day. The IEA's revised outlook reflects growing concerns over the prolonged impact of geopolitical tensions in the region.

The closure of the Strait of Hormuz has already removed approximately 11 million barrels per day of crude and condensate production, affecting supply and demand dynamics. Market participants appear to be adjusting their expectations in response to the IEA's forecast.