Oil Prices Fall More Than $1 Despite US-Iran Tensions

LONDON: Global crude oil prices fell by more than $1 per barrel on Thursday despite ongoing tensions between the United States and Iran, as concerns over weaker global oil demand weighed on the market.

According to Reuters, Brent crude fell $1.29, or 1.5%, to $87.69 per barrel. US West Texas Intermediate (WTI) crude declined $1.30, or 1.6%, to $81.97 per barrel.

Analysts said the latest decline was mainly driven by downward revisions to global oil demand expectations for 2026. Concerns that the ongoing conflict and regional tensions could weaken international trade and economic activity have also made investors more cautious.

Meanwhile, there has been no clear breakthrough in negotiations between the United States and Iran, with differences between the two sides remaining unresolved. The uncertainty has added to concerns about the future direction of global energy markets.

At the same time, tensions in the Middle East continue to raise concerns about potential disruptions to global oil supplies. The Strait of Hormuz remains particularly important, as it is one of the world's key energy shipping routes.

Analysts said the conflict and potential supply disruptions have limited a sharper decline in oil prices despite weaker demand expectations.

Market trends in the coming days are expected to depend on developments in US-Iran negotiations, the situation around the Strait of Hormuz, global economic activity, and fresh oil supply and demand data.