05:20 AM EDT, 08/12/2026 (MT Newswires) -- The International Energy Agency expects global oil demand to fall more than previously anticipated in 2026, as maritime and supply chain disruptions caused by renewed hostilities between the US and Iran undermined recovery efforts. In its August oil market report published Wednesday, the IEA said global oil demand is now projected to decline by 1.6 million barrels per day on average in 2026, 510,000 barrels per day higher than its forecast a month ago, as fuel prices remained elevated due to the continued closure of the Strait of Hormuz after the interim ceasefire deal collapsed mid-June. Demand is anticipated to see growth in the final quarter of 2026, then expand by 2.4 million barrels per day in 2027. Meanwhile, global supply is now forecast to drop by an average of 4.3 million barrels of oil per day in 2026, to 102 million barrels per day, before rebounding by 8.3 million barrels per day to 110.3 million barrels per day in the next year. "Although the market is projected to return to surplus towards the end of this year, risks remain substantial and the urgency of reopening the Strait has increased, as previously available inventory buffers are rapidly depleting," the IEA noted.

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