World Bank Warns Oil Demand Destruction Is Spreading Globally Amid Strait of Hormuz Disruptions The World Bank has issued a warning about a global oil supply shock and suppressed energy demand, driven by disruptions in the Strait of Hormuz and escalating Middle East conflict. Global oil demand saw a decrease in March and is projected to decline further in the second quarter of 2026. This “oil demand destruction” is attributed to rising prices, trade disruptions, and reduced economic activity.

• The World Bank warns of a global oil supply shock impacting energy demand.
• Disruptions in the Strait of Hormuz and Middle East conflict are key drivers.
• Global oil demand fell by 0.8 million barrels per day in March.
• Demand is forecast to drop by an additional 1.5 million barrels per day in Q2 2026.
• Factors contributing to demand decline include rising prices, trade disruptions, and reduced economic activity.