The International Energy Agency has signaled that a recovery in global oil demand has begun, citing the tentative resumption of supplies through the Strait of Hormuz as the primary catalyst.
The assessment comes as energy prices ease, suggesting markets are digesting the improved flow dynamics despite the lingering geopolitical backdrop.
This marks a significant shift in tone from the IEA’s recent market report, which projected a contraction in global oil demand for the first time since 2020.
That earlier forecast was heavily influenced by the ongoing conflict in Iran, which had severely disrupted supply chains and dampened consumption expectations.
The current update indicates that the immediate shock to the system is stabilizing as logistical bottlenecks ease.
The Strait of Hormuz remains the critical variable in this narrative.