Oil Prices Plunge Amid Iran Conflict Disruptions
Oil prices plummeted on Thursday after analysts downgraded their global oil demand forecasts for 2026 due to disruptions caused by the ongoing conflict with Iran. Despite supply constraints keeping prices relatively high, Brent crude futures fell $1.29, or 1.5%, to $87.69 a barrel, while U.S. West Texas Intermediate (WTI) crude slid $1.30, or 1.6%, to $81.97.
The Organization of the Petroleum Exporting Countries (OPEC) reduced its forecast for global oil demand growth this year to 580,000 barrels per day (bpd), while the International Energy Agency (IEA) expects consumption to contract by 1.6 million bpd due to fuel supply restrictions and high prices stemming from the conflict.
A surprise surge in U.S. commercial crude inventories also put downward pressure on oil prices, with a 17.4 million-barrel build last week amid falling exports. However, stalled talks between Iran and the United States kept prices from falling further, as attacks on shipping traffic in the Straits of Hormuz and Bab al-Mandab underscored ongoing risks to crude supply.