Global natural gas demand is forecast to experience its first annual decrease since 2022, driven by elevated prices stemming from the conflict involving Iran, according to the International Energy Agency's April 2026 Gas Market Report. This marks a significant shift from recent growth, which slowed from approximately 2.7% to 2.8% in 2024 to about 1% in 2025.

Europe is at the forefront of this demand reduction, with consumption falling nearly 4% year-on-year by March 2026. High prices and the increasing share of renewable energy in power generation are the primary drivers. The agency also anticipates the first annual decline in global oil demand since the pandemic, attributing it to demand destruction linked to the Iran conflict.

The current price levels, reminiscent of January 2023 following the Russia-Ukraine crisis, highlight the global gas market's persistent fragility. For investors, persistently high natural gas prices can squeeze operating margins for Bitcoin miners reliant on electricity costs. Producers and LNG exporters face a challenging environment of high prices coupled with contracting demand.