The IEA slashed its 2026 global oil supply forecast, with output now expected to plunge 4.3 million barrels per day this year as the failure to reopen the Strait of Hormuz pushes the market deeper into deficit

The IEA expects oil demand to fall by 1.6 million barrels a day in 2026 as high fuel prices and Strait of Hormuz disruptions weigh on consumption.

IEA forecasts a sharper oil supply deficit amid the Iran conflict. Crude oil reaching a new all-time high by December 31 at 12.5% YES.

Agency now sees global supply averaging 102 million bpd this year