Oil prices retreated on Thursday as markets assessed ongoing uncertainty over supplies from the Gulf region alongside concerns about weakening crude demand in the months ahead. Benchmark Brent oil futures fell 1.92% to $87.14 a barrel, while U.S. West Texas Intermediate crude futures declined 2.10% to $81.55 a barrel, according to data from Investing.com.
Conflicting signals from the United States and Iran regarding control of the Strait of Hormuz have contributed to market volatility this week. Washington and Tehran have both asserted control over the critical waterway, while shipping data indicated that activity in the region has largely stalled following military action between the two nations through late July and early August. The Strait of Hormuz is a crucial chokepoint for global oil markets, having supplied approximately 20% of worldwide oil consumption prior to the outbreak of the Iran war in late February.
Yemen's Iran-backed Houthis have compounded concerns about potential Gulf supply disruptions by launching attacks on ships in the Red Sea and the Bab el-Mandeb Strait, another vital oil shipping route. Despite these supply-side risks, traders have noted limited progress toward a deal to resolve the Iran conflict and reopen the Strait of Hormuz, with oil prices recording substantial gains over the past week. Demand concerns have taken center stage in recent market movements.
Both the Organization of the Petroleum Exporting Countries and the International Energy Agency reduced their 2026 oil demand forecasts in reports released on Wednesday. OPEC cut its global oil demand growth forecast for 2026 to 580,000 barrels per day, marking the organization's fourth downward revision this year. The IEA separately forecast a 1.6 million barrel per day decline in oil demand for 2026, reversing its previous estimate for 1 million bpd of growth.
Both organizations cited concerns over decelerating economic growth, constrained fuel supplies, and elevated prices resulting from the Iran war as factors influencing their revised demand outlooks. U.S. crude inventory data added to downward price pressure, with a reported surprise 17.4 million barrel build in oil stockpiles during the previous week. However, separate data showed a sharp contraction in the U.S.
Strategic Petroleum Reserve, which has been drawn heavily throughout 2026 to mitigate supply disruptions stemming from the Iran conflict. Source: Investing.com, published August 12-13, 2026
Source: investing.com