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OPEC Cuts Oil Demand Forecast Amid Iran Conflict

4/14/2026

30 4 Full Breakdown

Summary

Story summary

The Organization of the Petroleum Exporting Countries (OPEC) cut its second-quarter oil demand forecast by 0.5 million barrels per day to 105.07 million bpd due to the Iran war.
The U.S. Energy Information Administration expects a larger demand decline.
The conflict closed the Strait of Hormuz, reducing Middle Eastern production.
In March, OPEC output fell 7.9 million bpd, with Iraq and Saudi Arabia posting the largest cuts.

History

Historical Context

The 1973 oil crisis, triggered by OAPEC's embargo during the Yom Kippur War, caused oil prices to quadruple from $3 to nearly $12 per barrel, leading to economic turmoil in the U.S. and beyond. Today’s OPEC cuts, influenced by the Iran war and Strait of Hormuz tensions, reflect ongoing geopolitical struggles that continue to impact global energy policies and economic stability.

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Story summary

The Organization of the Petroleum Exporting Countries (OPEC) cut its second-quarter oil demand forecast by 0.5 million barrels per day to 105.07 million bpd due to the Iran war.
The U.S. Energy Information Administration expects a larger demand decline.
The conflict closed the Strait of Hormuz, reducing Middle Eastern production.
In March, OPEC output fell 7.9 million bpd, with Iraq and Saudi Arabia posting the largest cuts.

1 / 2