Oil prices fell more than $1 a barrel on Thursday following reduced 2026 global demand forecasts stemming from the U.S.-Israeli war on Iran. Losses were capped by ongoing supply risks in the Middle East.
Brent crude dropped $1.29 (1.5%) to $87.69 a barrel, while U.S. WTI crude fell $1.30 (1.6%) to $81.97.
Both OPEC and the International Energy Agency (IEA) downgraded their consumption forecasts, citing restricted supplies and high prices driven by the Middle East conflict. The IEA now expects global consumption to contract by 1.6 million barrels per day (bpd) this year.
Adding pressure, U.S. crude inventories jumped by 17.4 million barrels last week—the largest weekly increase since January 2023—as exports slowed, according to EIA data.
However, stalled U.S.-Iran peace talks and recent maritime attacks in the Strait of Hormuz and Bab el-Mandeb Strait continue to create supply uncertainty, placing a floor under prices.
Posted by: Alma Angeles/NET25 News
