The Organization of the Petroleum Exporting Countries (OPEC) has lowered its forecasts for global oil demand growth in 2026, affected by the repercussions of the war on Iran. The organization explained in its monthly report that demand is expected to recover later, while it raised its estimates for demand growth in 2027. It indicated that the continuation of the war has kept the Strait of Hormuz nearly closed, leading to a decline in Middle East production by millions of barrels per day and rising fuel prices, which increases pressures on consumers and companies and pushes governments to ration supplies. OPEC lowered its global demand growth forecasts for 2026 to 1.17 million barrels per day, compared to 1.38 million barrels in its previous estimates, while raising 2027 forecasts to 1.54 million barrels per day. The organization expected global demand to average 104.57 million barrels per day during the second quarter, down from last month's estimates. The report noted that the OPEC+ alliance was unable to implement production increase plans due to the closure of the Strait of Hormuz, as the alliance's average production in last April declined to 33.19 million barrels per day, a decrease of 1.74 million barrels from March.