Global oil demand faces its second-worst annual decline in 60 years as Iran-related supply shocks drive WTI crude to $97.26 and gasoline to $4.33 per gallon.
WTI crude surged to $97.26 due to Iran war disrupting Strait of Hormuz supply.
US regular gasoline prices spiked to $4.33/gallon, up from $2.78 nine months ago.
Diesel is identified as a choke point due to Gulf crude grade shortages.
Jet fuel is similarly constrained by middle distillate shortages.
The IEA has slashed its 2026 global oil demand forecast by 2.5 million barrels per day, citing severe supply disruptions in the Strait of Hormuz. As WTI crude climbs to $97.26, U.S. gasoline prices have surged to $4.33 per gallon, triggering a sharp decline in consumer sentiment and retail spending.
These middle distillates are currently constrained because refiners cannot easily backfill the specific crude grades lost due to the supply disruptions in the Gulf.