IEA Trims Oil Demand Forecast as Strait Closure Bites

The International Energy Agency (IEA) has revised its forecast for global oil demand in 2026, slashing it by 1.6 million barrels per day.

This represents a significant reduction from its previous estimate of one million barrels per day.

According to the IEA, the ongoing closure of the Strait of Hormuz and high fuel prices are contributing to the decline in demand.

The agency notes that despite a purported ceasefire, only a handful of ships are being allowed through the strait, leading to volatile pricing on global oil markets.