Iran War Wipes Out 2026 Global Oil Demand Growth, IEA Says

A Middle East conflict involving Iran triggered a 10.1 million-barrel daily oil supply collapse last month, the IEA reports, marking the sharpest disruption since 2020’s pandemic-driven downturn. Global oil demand will contract this year for the first time in six years, reversing all projected 2026 growth as soaring prices and scarcity reduce consumption worldwide, per the agency’s April assessment. The IEA warns of accelerating "demand destruction" as sustained high prices force industries and consumers to cut usage, with ripple effects expected across transportation, manufacturing, and energy sectors. The conflict has reshaped energy markets faster than anticipated, with the IEA calling it an unprecedented supply shock that eclipses prior geopolitical disruptions in scale and immediate economic impact. Analysts now predict prolonged volatility, as inventory drawdowns and production halts outpace alternative supply solutions, leaving major economies vulnerable to further shortages through year-end.