Environment and Energy
IEA Warns Hormuz Crisis Could Trigger First Global Oil Demand Contraction Since Pandemic
The International Energy Agency warns that disruptions in the Strait of Hormuz are triggering one of the largest oil market shocks in modern history, with global oil demand forecast to decline by 420,000 barrels per day in 2026 to 104 million barrels per day. The biggest impact is expected in Q2 2026, when demand could plunge by 2.45 million barrels per day. Global oil supply fell 1.8 million barrels per day in April to 95.1 million barrels per day, with cumulative losses from Gulf producers exceeding 1 billion barrels. North Sea Dated crude averaged $120.36 per barrel in April, with prices briefly surging to $144 before falling below $100.
