Why is global gas demand expected to drop for the first time since 2022, according to the IEA?

Global gas demand is expected to drop 0.5% this year—the first annual decline since 2022—due to higher prices caused by the Iran war, which cut off about a fifth of global liquefied natural gas (LNG) supply and triggered demand destruction, especially in Asia and the Middle East, while Europe saw stronger renewables output.

What impact has the Iran war had on global LNG supply and key regional markets?

The Iran war effectively cut off about a fifth of global LNG supply, causing key gas price benchmarks in Europe and Asia to rise 40%–70% since the war began; importers in India, Bangladesh, and Vietnam have been forced to rethink long-term gas strategies and seek alternatives, while LNG tanker attacks and ongoing shipping risks near the Strait of Hormuz continue to threaten supply stability despite a recent interim US–Iran peace deal.

Gas Demand Set for First Drop Since 2022 on Iran War, IEA Says

Jul 7, 2026

The IEA forecasts global gas demand will drop 0.5% this year as Iran war tensions drive up prices and disrupt supply chains. Middle East conflicts reduced available LNG by 20%, forcing importers to adjust strategies despite new US production offsets.

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