The IEA said renewed escalation of Iran-related hostilities and maritime disruptions will hinder output recovery, leaving the global oil market with an estimated 1.8 mln bpd supply shortfall. It expects inventory draws this quarter to be more than double prior estimates and says global stocks have tightened again. The agency raised its forecast of this year’s global oil demand decline by nearly 50% to 1.6 mln bpd, the largest annual drop since 2020. The IEA warned the 2026 supply gap could be th

The IEA said renewed escalation of Iran-related hostilities and maritime disruptions will hinder output recovery, leaving the global oil market with an estimated 1.8 mln bpd supply shortfall. It expects inventory draws this quarter to be more than double prior estimates and says global stocks have tightened again. The agency raised its forecast of this year’s global oil demand decline by nearly 50% to 1.6 mln bpd, the largest annual drop since 2020. The IEA warned the 2026 supply gap could be the biggest in five years but expects inventories to be rebuilt next year as the market swings back to surplus. It added that the US, Japan and Germany, after record strategic reserve releases in March, will need to replenish emergency stocks.