The International Energy Agency (IEA) has said global oil demand is expected to decline for the first time since the COVID-19 pandemic, partly due to the ongoing conflict between Iran and the United States.
Al Jazeera reported on Saturday, July 11, that the projected decline of around one million barrels per day in 2026 is linked to higher prices and disruptions to shipping routes in the Persian Gulf.
According to the IEA, the conflict between Iran and the U.S. is a major factor behind the expected drop in global oil demand.
The agency said tensions in the Gulf have left many crude oil tankers stranded for more than three months, preventing them from safely passing through the Strait of Hormuz.
Reports indicate that in May, global oil consumption fell by 5.3 million barrels per day compared with the previous year, averaging 97.9 million barrels per day.
Asia has experienced the largest decline due to its heavy dependence on Middle Eastern oil supplies, with China recording the sharpest drop worldwide at 1.5 million barrels per day.
