Global Market: IEA sees global oil demand recovering as Strait of Hormuz flows resume

The IEA said global oil demand is rebounding after a May low point, supported by improving supply and lower prices, though demand growth remains weaker than previously anticipated due to Middle East conflict impact. The agency revised its 2026 demand outlook to an annual increase 1 million barrels per day lower than last year, a marginal improvement from its prior 1.1 million bpd decline forecast. Global oil production surged 4.1 million bpd in June to 98.8 million bpd on resumption of Strait of Hormuz flows, though output remains about 9.4 million bpd below pre-conflict levels.