Amman, Aug. 12 (Petra) -- The International Energy Agency (IEA) sharply cut its global oil demand forecast for this year Wednesday, citing "persistent" supply losses from the closure of the Strait of Hormuz and high prices curbing buyer appetite, Agence France-Presse (AFP) reported.

The Paris-based agency now expects a decline of 1.6 million barrels per day, up from its July estimate of 1 million barrels per day.

In its statement, the IEA said the continued closure of the Strait of Hormuz and increasing fuel prices are keeping pressure on oil consumption.

Despite a ceasefire announcement and repeated talk of an imminent deal to reopen the strait, described by the agency as "abrupt diplomatic shifts," only a limited number of vessels are allowed through, driving "sharp volatility" in global oil prices.

IEA noted that renewed hostilities and maritime disruptions in July and early August undermined recovery efforts. Global oil supply is now expected to fall by an average of 4.3 million barrels per day this year before recovering in 2026, the AFP said.

On the demand side, the IEA forecast a return to growth in the final quarter of the year.

//Petra// NQ