The International Energy Agency (IEA) expects global oil demand to fall by 1.6 million barrels a day in 2026, pointing to high fuel prices and disruptions to the Strait of Hormuz as the main forces weighing on consumption, according to CNBC.

The projection reflects what the agency describes as demand destruction, a term used when elevated prices push consumers and businesses to cut back on how much fuel they use. As costs climb, some buyers reduce consumption or seek alternatives, pulling overall demand lower.

The Strait of Hormuz disruptions form a central part of the IEA’s assessment. The waterway is a critical route for global energy shipments, and interruptions there can ripple through supply chains and prices worldwide.

Together, the combination of high fuel prices and shipping disruptions is squeezing the global economy, the IEA said. The forecast signals that the pressures on energy markets are expected to continue shaping consumption patterns through 2026.

The figures reported by CNBC underscore the scale of the pullback the agency anticipates, with the 1.6 million barrels a day decline serving as a headline measure of how much demand the IEA expects to disappear over the year.