Oil Prices Plunge on Lower Demand Forecasts Amid Iran Conflict

Oil prices plummeted by more than $1 on Thursday due to lowered forecasts of global oil demand for 2026. Forecasters attribute this decline to disruptions caused by the US-Israeli war on Iran.

The Organisation of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) issued revised projections, with OPEC predicting a growth in global oil demand of only 580,000 barrels per day next year. The IEA expects a significant contraction in consumption this year, by 1.6 million bpd.

The price drop was reflected in the market, with Brent futures falling $1.29 (1.5%) to $87.69 a barrel and US West Texas Intermediate (WTI) crude dropping $1.30 (1.6%) to $81.97.