Oil Prices Fall More Than $1 as Demand Outlook Weakens Amid Middle East Conflict
LONDON:Global crude oil prices fell by more than $1 as weaker forecasts for global oil demand and concerns over the economic impact of the ongoing war involving the United States, Israel and Iran prompted investors to adopt a cautious approach.
According to Reuters, the international benchmark Brent crude price fell $1.29, or 1.5%, to $87.69 per barrel.
US West Texas Intermediate (WTI) crude also declined by $1.30, or 1.6%, to $81.97 per barrel.
Analysts said the latest decline was mainly driven by weaker expectations for global oil demand. Several institutions and market analysts have revised their forecasts for global oil demand in 2026 amid concerns that the ongoing conflict and regional tensions could disrupt international trade and economic activity.
There has also been no clear breakthrough in negotiations between the United States and Iran. Differences remain between the two countries over several issues, increasing uncertainty among investors about the future of global energy markets.
At the same time, the continuing tensions in the Middle East have raised concerns about global oil supplies. The situation in the Strait of Hormuz is particularly important for the international oil market because it is one of the world’s most critical energy corridors, through which a significant volume of oil reaches global markets.
While concerns about weaker global demand have put downward pressure on oil prices, the possibility of supply disruptions resulting from the Middle East conflict has limited a sharper decline.
Analysts said the direction of crude oil prices in the coming days will depend largely on developments in US-Iran negotiations, the situation in the Strait of Hormuz, global economic activity and new data on oil supply and demand.
