London (HRNW)- Crude oil prices fell by more than $1 per barrel in the global market as lower estimates for global oil demand and uncertainty surrounding the ongoing conflict between the United States, Israel and Iran made investors cautious.
According to Reuters, the price of international benchmark Brent crude fell by $1.29, or 1.5 percent, to $87.69 per barrel.
Similarly, the price of US benchmark West Texas Intermediate (WTI) declined by $1.30, or 1.6 percent, to $81.97 per barrel.
Experts said the recent decline was primarily driven by weaker expectations for global oil demand. Several institutions and market analysts have revised their forecasts for 2026, warning that continuing geopolitical tensions could negatively affect global trade and economic activity.
Meanwhile, there has been no clear progress in negotiations between the US and Iran, with differences between the two countries continuing to create uncertainty for investors and the global energy market.
At the same time, ongoing tensions in the Middle East continue to raise concerns about potential disruptions to global oil supplies. The Strait of Hormuz remains particularly important because it is one of the world’s major energy corridors through which significant volumes of oil reach international markets.
While concerns over weaker global demand have placed downward pressure on crude prices, geopolitical tensions and the possibility of supply disruptions have limited a sharper decline.
Analysts say the future direction of oil prices will depend largely on US-Iran negotiations, developments surrounding the Strait of Hormuz, global economic activity and new data on oil supply and demand.
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