Global oil demand is beginning to recover as crude shipments through the strategic Strait of Hormuz gradually resume and oil prices ease, according to the International Energy Agency's (IEA) latest monthly report released on Friday.According to Reuters, the Paris-based energy watchdog said global oil consumption is rebounding after hitting a low point in May, supported by improving supply conditions and lower prices. The agency, however, continues to expect demand growth to remain weaker than previously anticipated because of the impact of the Middle East conflict.The IEA revised its outlook for global oil demand through 2026, forecasting an annual increase that is 1 million barrels per day lower than last year. That marks a slight improvement from its previous projection of a 1.1 million barrels-per-day decline, reflecting signs of stabilisation in energy markets despite ongoing geopolitical tensions.On the supply side, Reuters reported that global oil production rebounded sharply by 4.1 million barrels per day in June to reach 98.8 million barrels per day. The recovery was driven largely by the resumption of oil flows through the Strait of Hormuz, allowing Gulf producers to restore part of their disrupted output.Despite the improvement, the IEA noted that global oil production remained about 9.4 million barrels per day below levels seen before the outbreak of the Middle East conflict, highlighting that supply disruptions continue to weigh on the market.The latest assessment suggests that while energy markets are gradually recovering from recent geopolitical shocks, both supply and demand remain below pre-conflict trends, with the pace of normalisation dependent on continued stability in one of the world's most critical oil transit routes.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times.)