Oil prices declined Thursday, with both Brent and WTI falling roughly 2%, as concerns over global economic growth and inflation weighed on demand expectations despite ongoing uncertainty surrounding supply disruptions in the Middle East.
Brent crude settled at $76.30 per barrel, down $1.72 (2.2%), while West Texas Intermediate (WTI) closed at $72.08 per barrel, down $1.44 (2.0%). The declines followed Wednesday’s rally, when both benchmarks reached their highest settlement levels since late June as renewed tensions between the United States and Iran increased supply concerns.
The market continues to monitor developments surrounding the Strait of Hormuz, where shipping activity has remained below normal levels following the conflict. Prior to the war, roughly one-fifth of global oil and liquefied natural gas shipments passed through the strategic waterway, making any disruption a significant risk to global energy markets.
Although renewed military exchanges have increased uncertainty, traders remain focused on whether the disruption will be temporary or lead to a prolonged reduction in Middle Eastern exports. Recent estimates indicate that crude flows through the Persian Gulf have improved from earlier disruptions but remain below pre-conflict levels following renewed attacks and shipping concerns.
Additional pressure on crude prices came from broader economic concerns, including inflation risks, monetary policy uncertainty, and signs of weaker demand growth in major economies. Higher interest rates and slower economic activity could weigh on future oil consumption.
Meanwhile, refined product markets remained volatile after Russia announced restrictions on diesel exports following continued attacks on energy infrastructure. The move added further uncertainty to global fuel supplies, particularly as markets continue to assess the impact of disruptions in both the Middle East and Eastern Europe.