International Energy Agency (IEA) stated on Wednesday that the deepening impact of the Strait of Hormuz blockade will cause global oil demand to fall more than previously expected this year. The IEA predicts that global crude oil demand will decrease by 1.6 million barrels per day in 2026, an upward revision of 510,000 barrels per day from its July monthly forecast.

The agency noted that persistently high fuel prices will continue to suppress consumption, though demand is expected to gradually recover during the year and return to growth in the fourth quarter. The situation in the Strait of Hormuz remains highly uncertain, with the United States and Iran publicly advancing their respective demands but failing to reach any agreement to reopen this critical shipping route.

The IEA added on Wednesday that renewed hostilities and disruptions to maritime shipping have hindered the progress of global crude oil supply increases. In July, global crude oil supply was still down by 6.3 million barrels per day year-on-year.

These conditions have exacerbated price volatility in the crude oil market. Last month, the international benchmark Brent crude briefly surpassed $100 per barrel before falling to near $70 per barrel. It is currently trading at just under $90 per barrel.