IEA Slashes Oil Demand Forecast by 1.6 Million Barrels Amid Strait of Hormuz Disruptions

The International Energy Agency (IEA) has cut its forecast for global oil demand in 2026, citing the ongoing closure of the Strait of Hormuz and high fuel prices.

In its latest report, the IEA reduced its forecast slump to 1.6 million barrels per day (bpd), compared to its previous estimate of one million bpd in July.

The agency attributed the decline in demand to the prolonged closure of the Strait of Hormuz, through which around one-fifth of global oil supplies transit, as well as elevated fuel prices that have remained above pre-attack levels since February.