New Delhi, Oct. 14 -- Global oil demand is expected to decline by 2.6 million barrels per day (mb/d) in 2026, with diesel accounting for 25 per cent of the dip, according to the International Energy Agency (IEA).

In its latest report, the IEA noted that the Iran war is weighing on global oil demand amid fuel shortages, soaring prices and deteriorating economic conditions.

Although global oil demand is expected to recover by 2 million barrels per day in 2027, it will still remain 620,000 barrels per day, or 0.6 per cent, below 2025 levels, the agency said.

"World oil demand is forecast to fall by 2.5 mb/d y-o-y in 4Q26 and 2.6 mb/d on average in 2026. As the Iran war manifests itself through restricted product availability, soaring fuel...