In Reply to: We can all walk the streets feeling a little safer posted by mh on April 14, 2026 at 10:50:53
Oil prices have started to slip — but not necessarily for reasons that suggest a return to market normalcy.
The International Energy Agency said Tuesday that “demand destruction” has begun to unfold. As a result of the acute energy commodity shortages stemming from the closure of the Strait of Hormuz, oil appears to have reached a point where it is now so expensive that overseas businesses and households have begun curbing investment and consumption.
Countries in Asia, Europe and even other parts of the Middle East that depend on supplies passing through the strait have begun curtailing their use of natural gas, seen waves of flight cancellations and implemented policies to reduce overall fuel use, the agency noted in the report.
It’s a phenomenon likely to affect global economic growth. And while it does not yet appear to be affecting the U.S. economy, any impact would threaten to destabilize an already fragile labor market.
The IEA believes demand destruction could become a global trend.
“Demand destruction will spread as scarcity and higher prices persist,” it said.
The report comes as President Donald Trump has announced a targeted blockade of the Strait of Hormuz in a bid to increase economic pressure on Iran. The global economy has so far proven resilient — but that may soon change.