OPEC Cuts Oil Demand Growth Forecast Amid Hormuz Crisis

OPEC has revised its forecast for global oil demand growth in 2026, citing the ongoing Iran war as a significant factor. The group now expects oil demand to rise by 1.17 million barrels per day (bpd) in 2026, down from its previous estimate of 1.38 million bpd.

This adjustment is part of OPEC's quarterly report, which also noted that the war has effectively closed the Strait of Hormuz, a key global oil route. As a result, fuel prices have surged, and consumers and businesses are feeling the pinch.

OPEC+ output, which includes countries such as Russia, dropped by 1.74 million bpd in April due to the Hormuz closure. The group's overall production averaged 33.19 million bpd in April, down from March.