IEA Slashes Oil Demand Forecast Amid Strait of Hormuz Disruptions

The International Energy Agency (IEA) has sharply reduced its forecast for global oil demand this year, citing ongoing disruptions in the Strait of Hormuz and high prices as deterrents to buyers.

Demand is expected to slump by 1.6 million barrels per day (mb/d), down from a previous forecast of one million barrels per day in July.

The closure of the Strait of Hormuz, through which around one-fifth of global oil supplies usually transit, has severely impacted supply chains and led to volatile pricing on global oil markets.