IEA projects 2.5% drop in global oil demand for 2026
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
The International Energy Agency projects that worldwide oil demand will fall 2.5 percent in 2026 compared with last year. This sharp reversal follows global oil and gas use tumbling due to production and shipping route disruptions caused by the war with Iran.
From rawstory.com
Why it matters
The decline in demand puts global fossil fuel emissions on pace for their first yearly decline since the COVID-19 pandemic. Economists agree that the longer the energy crisis lasts, the more likely consumers and businesses are to make lasting changes, such as shifting to hybrids and electric vehicles.
Global oil market dynamics are being shaped by divergent views on demand forecasts, US policy shifts under the Trump administration, slower EV uptake in Europe, and major export cuts from Gulf producers due to the Iran war.
From rawstory.com
Who's involved
- International Energy AgencyModeling global energy demand and reporting on market trends
- Donald TrumpHis administration's policies and the war with Iran are cited as drivers of market change
- Middle EastThe geopolitical region cited as the source of production and shipping disruptions
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Middle EastSpeculative
The ongoing geopolitical conflict in the Middle East could affect shipping routes and production supply.
Keep exploring
Part of
Geopolitical conflict and policy shifts reshape global energy marketsAlso in this story
- Global energy markets face slow recovery forecasts amid intensified attacks, policy shifts, and a new diesel supply agreement.
- The International Energy Agency (IEA) has released an assessment that contributes to the U.S. government's energy outlook.
- European markets saw mixed results as STOXX 600 rose, LVMH reported poor sales, and ECB held rates amid Middle East tensions.
- Amid geopolitical tensions, the war is accelerating clean energy investments and prompting the IEA to revise peak oil consumption forecasts.
The entities involved
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International Energy Agency
autonomous intergovernmental organisation
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DNV
international certification body and classification society
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Donald Trump
American businessman and politician (born 1946), President of the United States (2017–2021; since 2025)
Related events
- The administration is managing gas prices and seeking to ease upward pressure amid the U.S. conflict with Iran.
- Global markets are affected by Middle East de-escalation, ongoing Ukraine energy attacks, and Donald Trump's waiver of Russia sanctions.
- Trump cuts deal for Russian diesel as Iran war drives up gas prices, while Musk donates to Republican election efforts.
- Trump and Putin agreed on October 1st to commit to delivering diesel fuel to the global market.