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The Independent UK

National

Michelle Chapman

Energy agency lowers world oil demand forecast for the year

Oil International Energy Agency Donald Trump Gas Prices Iran

Gasoline Prices Colorado - (Copyright 2026 The Associated Press. All rights reserved.)

The International Energy Agency is lowering its world oil demand forecast for the year, noting that the war in Iran is leading to escalating fuel prices, limited oil supplies and a deteriorating economic outlook.

The agency's report on Wednesday said that global oil demand is predicted to drop 2.5 million barrels a day year-over-year in the fourth quarter and fall 2.6 million barrels a day on average this year. Diesel is expected to account for 25% of the drop.

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