Oil Prices Plunge as US-Iran Tensions and Demand Forecasts Weigh on Market
Oil prices took a sharp drop on Thursday after analysts revised their global demand outlook for 2026, citing the impact of geopolitical disruptions linked to the US-Israel conflict with Iran.
Brent crude futures declined by $1.29, or 1.5%, to $87.69 a barrel, while US West Texas Intermediate (WTI) crude dropped by $1.30, or 1.6%, to $81.97 a barrel.
Despite the fall in prices, traders remained focused on developments around the Strait of Hormuz, a crucial route for global oil shipments. The waterway has been a point of concern due to supply disruptions.
The US-Iran conflict continues to be a major factor in the oil market's volatility, with the International Energy Agency (IEA) warning that the global oil market could face a supply deficit of 1.8 million barrels per day during the current quarter.