The International Energy Agency (IEA) has announced that global oil demand will decline this year for the first time since the COVID-19 pandemic, primarily due to a surge in prices caused by ongoing conflict in West Asia. The IEA's monthly report highlighted that the conflict has disrupted the global outlook for oil consumption, leading to 'demand destruction' as higher prices and scarcity persist. Flows of crude oil and refined products through the Strait of Hormuz have plummeted to just 3.8 million barrels per day, down from pre-crisis levels of about 20 million barrels, which accounted for roughly 20% of global supplies. Additionally, global oil supply decreased by 10.1 million barrels per day, or about 9%, as major producers such as Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait were forced to cut production. Despite a surge in oil futures prices in March, actual cargo prices remain below record levels, trading just under $100 per barrel in London. The report also noted that Russia's oil export earnings nearly doubled in March, reaching $19 billion as exports rose to 7.1 million barrels per day.