Oil Prices Plummet on Downbeat Demand Forecasts Amid US-Iran Conflict

Oil prices dropped on Thursday as forecasters lowered global oil demand projections for 2026 due to disruptions from the US-Israeli war on Iran. Brent futures fell $1.29, or 1.5%, at $87.69 a barrel by 0100 GMT, while U.S. West Texas Intermediate (WTI) crude dropped $1.30, or 1.6%, to $81.97.

The Organisation of Petroleum Exporting Countries (OPEC) lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day in its monthly oil market report on Wednesday. The International Energy Agency also reduced its consumption forecast, expecting a 1.6 million bpd contraction this year, down from 1 million bpd last month.

The deadlocked talks between Iran and the US have kept prices elevated despite the conflict's disruptions to supply chains. A senior Iranian source said there had been no progress in talks to revive the interim deal agreed in June and define a time frame to implement it.