Global oil demand is expected to be almost one million barrels per day less than was forecast before the Iran war, as shortages and soaring costs prompt drastic cutbacks by consumers and businesses, a report by the International Energy Agency (IEA) said on Wednesday.
With the closure of the Strait of Hormuz choking off supplies and keeping prices high, less oil is being used to make products such as jet fuel, LPG cooking gas and petrochemicals, the Paris-based IEA said in its monthly oil report, forecasting the biggest quarterly demand drop since the COVID pandemic.
The Iran war “upends our global outlook”, the government-backed agency said, adding that it now expects oil demand to shrink by 80,000 barrels per day in 2026 from last year.
Before the conflict began, the IEA said in February it expected oil demand to rise by 850,000 barrels per day this year, meaning the difference between the pre-war and current estimates is 930,000 barrels a day, or 340 million barrels a year.
That could have a significant impact on the outlook for planet-heating carbon emissions this year.
At an intensity of 434 kg of carbon dioxide per barrel of oil – the estimate used by the US Environmental Protection Agency – the annual reduction in carbon dioxide emissions from oil for 2026, compared with the pre-war forecast, is similar to the amount emitted by the Philippines each year.
Harry Benham, senior advisor at Carbon Tracker, told Climate Home News that he expects at least half of the reduction in oil demand to be permanent because of efficiency gains, behavioural change and faster electrification.
The oil shock is leading to oil being replaced, especially in transport, with electricity and other fuels, just as past oil shocks drove lasting reductions in consumption, he said. “The shock doesn’t delay the transition – it reinforces it,” he added.
Demand takes a hit
While demand for oil has fallen significantly, supplies have fallen even further. Supply in March was 10 million barrels a day less than February, the IEA said, calling it the “largest disruption in history”.
This forecast relies on the assumption that regular deliveries of oil and gas from the Middle East will resume by the middle of the year, the IEA said, although the prospects for this “remain unclear at this stage”.
Last month, US Energy Secretary Chris Wright told the CERAWeek oil industry conference that prices were not high enough to lead to permanent reductions in demand for oil, known as demand destruction.
But the IEA said on Wednesday that “demand destruction will spread as scarcity and higher prices persist”.
Industries contributing to weaker demand for oil include Asian petrochemical producers, who are cutting production as oil supplies dry up, the report said, while consumers are cutting back on liquefied petroleum gas (LPG), which is mainly used as a cooking gas in developing countries, the IEA said.
Flight cancellations caused by the war have dampened demand for oil-based jet fuel, the IEA said. As well as cancellations caused by risk from the conflict itself, airports have warned that fuel shortages could lead to disruption.
Across the world, governments, businesses and consumers have sought to reduce their oil use after the war. The government of Pakistan has cut the speed limit on its roads, so that people drive at a more fuel-efficient speed, and Laos has encouraged people to work from home to preserve scarce petrol and diesel.
Nepal’s EV revolution pays off as oil crisis causes pain at the pumps
Consumers in Bangladesh are seeking electric vehicles (EVs) to avoid fuel queues and, in Nigeria, more people are seeking to replace petrol and diesel generators with solar panels, Climate Home News has reported.
In the longer term, the European Union is considering cutting taxes on electricity to help it replace fossil fuels and France is promoting EVs and heat pumps.
IEA urged to help “future-proof” economies
Meanwhile, the IEA came under fire last week from energy security experts, including former military chiefs, who signed an open letter in which they accused the agency of offering “only a temporary response to turbulent markets”, calling for stronger structural action “to future-proof our economies”.
They said that besides releasing emergency oil stocks and offering advice on how to reduce oil demand in the short term, the IEA should show countries how to reduce their exposure to volatile oil and gas markets.
The IEA has also been under pressure from the Trump administration to talk less about the transition away from fossil fuels.
This article was amended on 15 April 2026 to correct the drop in 2026 forecast oil demand from “nearly a billion” to “nearly a million”
The post IEA slashes pre-war oil demand forecast by nearly a million barrels per day appeared first on Climate Home News.
IEA slashes pre-war oil demand forecast by nearly a million barrels per day
Climate Change
‘Step up and lead’: All eyes on Australia as it takes the reins of UN COP31 climate negotiations
ANTALYA, Türkiye, Saturday 7 November 2026 — As leaders and delegates gather for the UN COP31 climate summit, Greenpeace Australia Pacific is calling on the Australian government in its role as President of Negotiations to ensure the just transition away from fossil fuels is central to negotiations, rigorously defend the 1.5°C temperature goal, and significantly scale up climate finance commitments.
This year’s climate talks take place amidst a deepening global energy shock, and grim reports that the world will barrel past the 1.5°C temperature goal. They also follow a deadly summer of extreme weather disasters that swept the northern hemisphere, with fears that a severe El Niño will see similar dangerous impacts in Australia.
But recent election wins by progressive candidates in the United States and Brazil are set to breathe energy and optimism into the negotiations as people around the world, bearing the brunt of soaring cost of living and climate disasters, shun regressive and divisive politics.
Speaking from Antalya, Dr Simon Bradshaw, COP31 Lead at Greenpeace Australia Pacific, said: “The world is in a moment of flux. We know it is in moments of huge upheaval that era-defining progress can happen — but only when countries step up and lead.
“As Australia takes control of COP31 Negotiations, we have an opportunity and responsibility to shepherd global climate cooperation through this moment of interlocking crises. That means backing Pacific leadership and priorities, and leading by example at home to end fossil fuels and deliver new, multi-year climate finance commitments.
“As a major coal and gas exporter, Australia plays an outsized role in fuelling the climate crisis, and has approved 38 new, extended and expanded fossil fuel projects since first elected in 2022. More than half the world’s coal export project pipeline is in Australia, and the Albanese Government is poised to make decisions on massive new gas projects. Australia must reckon with this reality.
“Domestically, we have made significant strides on ramping up renewables and the global ‘35 by 35’ electrification goal is welcome and necessary. But electrification must end fossil fuel dependence, not be an end in itself — its ultimate success depends on ensuring electricity comes from renewable sources that displace fossil fuels and align with a 1.5°C pathway.
“In Türkiye, the Australian government can rise to the occasion and show what true climate leadership looks like, but we can not move the world towards a clean energy future while expanding the industry we need to leave behind.”
Speaking from Antalya, Shiva Gounden, Head of Pacific at Greenpeace Australia Pacific, said: “As leaders meet in Türkiye amidst warnings that we will pass the 1.5°C threshold, the stakes have never been higher. Every heatwave, every flood, every storm is being unleashed on communities with the deadly force of accumulated emissions and gives a warning of what is to come.
“In Antalya, the COP31 Presidency must respond to the accelerating climate crisis and defend the 1.5°C goal based on the law and the science. 1.5°C is a non-negotiable survival line for Pacific communities and climate-vulnerable nations facing rising seas, extreme weather disasters, food insecurity and soaring economic costs. It is a fundamental component of the Paris Agreement and enshrined as a binding legal benchmark by the world’s highest court, the International Court of Justice.
“Australia must arrive at COP31 with more than meaningless speeches. The Pacific and the world need concrete dates, credible plans to deliver roadmaps away from fossil fuels built on the best available science, and a commitment to put people, energy security and the planet ahead of fossil fuel interests.
“We need real action to advance multilateral climate cooperation, ensure the just transition away from fossil fuels is high on the agenda, and back longstanding Pacific priorities — including keeping 1.5°C alive and significantly scaling-up climate finance.”
ENDS
Images and footage from Greenpeace’s COP31 ‘Keep 1.5°C alive’ photo opp in Antalya can be found here
Greenpeace has a diverse range of experts available for interviews and commentary from Antalya. Headshots can be found in Greenpeace Media Library here
Media contact: Kate O’Callaghan in Antalya (GMT+3) on +61 406 231 892 (Whatsapp/Signal)
‘Step up and lead’: All eyes on Australia as it takes the reins of UN COP31 climate negotiations
Climate Change
‘Blue COP31’ set to spotlight need for ocean protections amid record heat
As an extreme El Niño breaks marine temperature records, COP31 is set to boost the profile of the ocean’s role in solving climate change, but finance and clear conservation measures will be needed for it to move the needle, experts said.
The Turkish presidency has announced plans for an Antalya Ocean Declaration that recognises the centrality of the global ocean – the world’s largest carbon sink – in regulating the climate and minimising the now unavoidable overshoot of global temperatures above 1.5C over pre-industrial levels.
Meanwhile, as part of the formal UN negotiations, Australia has announced plans to land a cover decision in Antalya, which, according to veteran former US negotiator Sue Biniaz, would be the only section of the formal negotiations where the role of oceans could be included.
She added that an outcome at COP31 seems likely, given the initiative from both presidencies and a push from over 100 countries – including Brazil, the EU and the African Group of countries – calling for the UN negotiations to deliver a plan for implementing ocean measures.
Governments will arrive in Antalya with a “super El Niño” adding stress to marine ecosystems and expected to continue to intensify until December 2026, with parts of the Pacific averaging almost 30C (86F) – over 3C more than normal – in October, according to monthly EU sea temperature data.
Needs for ocean conservation and funding
While elevating the ocean agenda is “critical”, it must lead to funding for ocean conservation and a clear plan for reaching the global target – set at UN biodiversity talks in 2022 – of protecting 30% of the global ocean by 2030, said Pradeep Singh, senior ocean governance expert at Oceano Azul Foundation.
The ocean is precisely where governments are farthest off track from meeting this target – informally known as the 30×30 goal. Even if countries meet all their nature conservation plans, only about 12% of the global ocean would be protected, the UN says.
“Acknowledgment of marine protected areas and the 30×30 target as climate infrastructures will certainly boost efforts and funding for science and management,” Singh told Climate Home News.
Shamini Selvaratnam, director of international climate and clean energy at Ocean Conservancy, said an ocean commitment that makes a difference in coastal communities “takes funding, local capacity and support that countries can actually access”.
An analysis by climate think tank Zero Carbon Analytics shows that investment in the blue economy – through activities like sustainable fisheries or cleaner shipping – is only at about 2% of the needs, which are estimated at $550 billion per year.

Following-through on commitments
Selvaratnam added that countries must also establish mechanisms to follow through on these measures, which currently only exists in the form of a non-binding dialogue that is not expected to produce any negotiated agreements.
She said that countries at COP31 must find ways for their ocean commitments to inform the next global stocktake, the UN’s five-yearly review of progress on climate action. Some countries – including African countries, Latin American nations, small island states and the European Union – have backed a process that culminates in the next global stocktake.
At climate negotiations, countries are not mandated to include ocean conservation measures in their climate plans. But a group of countries led by France and Brazil is pushing them to do so voluntarily through an initiative called Blue NDC Challenge. Seventeen countries have joined the initiative so far.
In its list of COP31 priorities, the EU has called for the “critical role” of oceans to be recognised, but falls short of calling for any specific actions to feature marine action more prominently in climate plans.
As part of their demands, ocean campaign groups have called for the establishment of an “Antalya Ocean Compact”, a platform where countries can coordinate efforts across different environmental treaties, including the UN climate, biodiversity and high seas negotiations.
Ultimately, Selvaratnam said a strong deal “must accelerate emissions cuts, clean energy, and a transition away from fossil fuels, including offshore oil and gas”.
Ilana Seid, chair of the AOSIS group of small island states and permanent representative of Palau to the UN, said during a press briefing last week that “meaningful progress” on emissions reduction is “the best way” to alleviate stress on the ocean.
The post ‘Blue COP31’ set to spotlight need for ocean protections amid record heat appeared first on Climate Home News.
‘Blue COP31’ set to spotlight need for ocean protections amid record heat
Climate Change
Nepal seeks stronger recognition of mountain issues in UN climate process
In the wake of its recent glacial flooding disaster, Nepal and the kingdom of Bhutan have proposed a new agenda item on mountains and climate change for the COP31 summit which opens on Monday in the Turkish city of Antalya.
In a submission addressed to the COP31 presidency and the head of the UN climate secretariat (UNFCCC), Nepal said the agenda item, entitled “1.5°C Warming in Mountains”, is an effort to strengthen the response of the international community to the climate risks facing the world’s mountain regions.
The item proposes that mountain issues should become a regular part of the formal UN climate change process, with a focus on scientific assessment of the risks associated with warming overshooting 1.5C, an annual high-level dialogue, a dedicated work programme and improved access to climate finance.
Maheshwar Dhakal, chief of the climate change management division of Nepal’s Ministry of Agriculture, Forests and Environment, told Climate Home News that Himalayan countries face similar problems such as collapsing glaciers and flooding from glacial lakes.
“We are trying to bring all Himalayan countries together under this agenda item,” he said.
COP31 Briefing: What to expect from the Antalya climate summit?
At this year’s UN General Assembly, Nepal’s Prime Minister Balendra Shah called for strong global action to ensure climate justice and proposed creating a Himalayan Climate Resilience Mechanism led by India, China and Nepal. It would share satellite data, monitor glacial slopes and lakes, strengthen early warning systems and coordinate cross-border disaster response.
Nepal has experienced significant infrastructure losses and human casualties from flooding every year since 2020. In late August, the collapse of a glacial slope on the border with Tibet caused a torrent of water and debris to course down the Bhote Koshi River, leaving more than 6,000 people dead or missing.
According to a government needs assessment, the disaster caused an estimated $2.7 billion in physical damage and economic losses, while around $4.8 billion will be required for recovery and reconstruction.
More research needed on threats
Although high mountain regions are known to be fragile ecosystems, especially as global warming accelerates glacier melt, the extent of their vulnerability is still not fully understood. When the devastating Bhote Koshi floods hit, it opened the eyes of the world to the risks.
Dhakal said the Bhote Koshi floods “have proved the impacts of climate change in the Himalayan region”, which were linked to rising temperatures by scientists with the World Weather Attribution group. “Therefore, Nepal wants scientific studies, research and political discussions on mountain climate risks to receive greater attention at international climate conferences,” he added.
Nepal has been making efforts on this front since 2009, when it held a cabinet meeting at Kalapatthar near Mount Everest. Since COP28 in Dubai, Nepal has organised high-level events and dialogues on mountain issues at COPs and is co-hosting one at COP31 with Bhutan, Pakistan, Kyrgyzstan and Tajikistan.
Editor’s Desk: Nepal’s disaster has laid bare the world’s adaptation accountability gap
Dhakal said the dialogues held so far have raised awareness, but mountain concerns must become part of the formal UN climate process to unlock climate finance and technical support that can bolster countries’ capacity to tackle climate threats.
If specific indicators and priorities are developed for mountain regions, vulnerable developing countries like Nepal would have better access to finance to help them adapt to the climate warming they have done very little to cause, he added.
More detailed data would enable them to prepare stronger project proposals for international climate funds, including the Green Climate Fund (GCF). In 2025, the GCF backed a project to protect livelihoods from climate-induced flooding in Nepal but it took seven years to get approval.
Sindhu Dhungana, an alternate board member at the GCF, said the problem is becoming more widespread and urgent for the Hindu Kush Himalaya region.
“The economies, cultures and almost everything in Himalayan countries depend on mountains,” he explained. “For us, climate change is mountain change… [it has] affected everything, including the economy and biodiversity.”
Destroyed development projects
Nepal wants the UN climate process to address mountain risks both before and after disasters. Countries need better research, technology, early warning systems and other adaptation measures to protect people and infrastructure. But even when countries take precautions, loss and damage is likely to occur and will require international support to address it.
Nepal has been provisionally allocated $21.6 million from the United Nations’ new Fund for Responding to Loss and Damage (FRLD) to help with the aftermath of the B



