US-Iran Deadlock Sends Oil Prices Higher Amid Reduced Demand Projections

Oil prices inched up on Wednesday as tensions between the US and Iran continued to escalate. The rise was limited, however, after forecasters reduced their projections for global oil demand in 2026.

Brent futures settled at $88.98 a barrel, a 7-cent gain from Tuesday's close, while US West Texas Intermediate crude rose 7 cents to $83.27. This increase came after a senior Iranian source told Reuters that there were no discussions between Iran and the US to extend their ceasefire.

Simon-Peter Massabni, head of business development at brokerage XS.com, noted that markets are growing increasingly doubtful about reaching an agreement to ease disruptions to crude flows from the region or prevent another escalation of the conflict.