Oil markets face mounting pressure as geopolitical tensions escalate. The International Energy Agency warned of greater price volatility ahead after the Iran war triggered record supply losses from the Strait of Hormuz. With over 14 million barrels per day of supply cut offline, global oil inventories are depleting at unprecedented rates, resulting in cumulative losses exceeding one billion barrels. OPEC simultaneously lowered its 2026 demand growth forecast to 1.2 million barrels per day from 1.4 million, signaling weakening economic outlook. Brent crude futures traded near $105.93 per barrel Thursday while U.S. WTI fell to $100.83, reflecting mixed market sentiment. OPEC production has declined more than 30 percent since late February. Analysts emphasize that sustained elevated fuel prices depend on geopolitical developments and potential infrastructure damage in the Middle East.
