IEA Trims Oil Demand Forecast Amid Strait of Hormuz Disruptions

The International Energy Agency (IEA) has reduced its forecast for oil demand in 2026 by another 510,000 barrels per day (bpd). This downward revision is attributed to the ongoing closure of the Strait of Hormuz and significantly higher production levels.

The IEA had previously anticipated a supply deficit in 2026, but this latest adjustment suggests that the oil market may be less tight than initially thought. The agency's revised forecast indicates that global oil demand will continue to grow, albeit at a slower pace than expected.