S&P Global Energy has reduced its global oil demand forecast for 2026 by 700,000 barrels per day, as the U.S.–Iran war disrupts energy supplies from the Middle East and weakens demand in the second quarter, consultant Ethan Ng said on Thursday.

Global oil demand is projected to decline by 80,000 barrels per day (80 kb/d) on average in 2026, reversing earlier expectations of 730 kb/d growth, as the Iran conflict disrupts global energy markets, the International Energy Agency (IEA) said on Tuesday.

Global oil demand is projected to increase by 849,000 barrels per day (bpd) in 2026, according to the latest report from the International Energy Agency (IEA).

Oil prices fell on Tuesday as concerns about a brewing trade war between the United States and the European Union heightened fears of weaker fuel demand due to slowing economic activity.

Oil prices rose for a second consecutive session on Friday, supported by optimism over a potential de-escalation of the U.S.-China trade war. However, the market is still on track for a weekly decline of around 2%, driven by concerns over oversupply.

Oil prices retreated as traders expressed concerns over the potential impact of the US-led trade war on global energy demand.

Oil prices declined as concerns grew that the Trump administration's upcoming tariff measures could reduce global energy demand.

Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened while data showing an unexpected increase in U.S. jobs openings pointed to expanding economic activity and consequent growth in oil demand.