Oil Prices Plunge Amid Downgraded Demand Forecasts and Ongoing US-Iran Conflict

Crude oil prices plummeted by over $1 a barrel on Thursday after analysts downgraded their forecasts for global oil demand in 2026, citing disruptions caused by the ongoing US-Israeli conflict with Iran.

The Brent crude futures fell $1.29, or 1.5%, to $87.69 a barrel, while US West Texas Intermediate (WTI) crude declined $1.30, or 1.6%, to $81.97 a barrel.

The decline in oil prices came as analysts cut their outlook for global oil demand due to the conflict's impact on economic activity and fuel consumption.

Supply risks remain elevated as tensions continue around key shipping routes in the Middle East, with little sign of progress toward reopening the Strait of Hormuz.