Global oil demand is expected to decline more sharply than previously projected this year as disruptions linked to the closure of the Strait of Hormuz continue to weigh on the market, the International Energy Agency said on Wednesday.

The IEA now expects global oil demand to fall by 1.6 million barrels per day in 2026, an increase of 510,000 barrels per day from its previous forecast issued in July.

The agency said that elevated fuel prices will continue to suppress consumption, while demand is expected to strengthen over the course of the year and return to growth during the final quarter.

The situation surrounding the Strait of Hormuz remains unresolved, as the US aggression on Iran continues. “Renewed hostilities and maritime disruptions” are hindering efforts to increase global oil supplies, the IEA said on Wednesday, adding that global supply remained 6.3 million barrels per day below year-earlier levels in July.

Source:Websites