Oil prices ease to two-month lows as US downplays further Iran strikes
USO•Oil prices fell to their lowest levels since August 31 as US officials played down the need for further military action against Iran. Brent was down 1.0% at $91.69 a barrel and WTI fell 0.8% to $86.19; the EIA projected global petroleum demand would decline to 102.4 million barrels per day in 2026.
1. Prices retreat
Oil prices fell to two-month lows on Tuesday after US officials downplayed the need for additional military action against Iran, easing fears of further supply disruptions. Brent fell 88 cents, or 1.0%, to $91.69 a barrel, while US WTI fell 66 cents, or 0.8%, to $86.19. Both benchmarks were on track for their lowest closes since August 31.
2. Iran and regional tensions
Secretary of State Marco Rubio said sanctions and a naval blockade were working so well that President Donald Trump did not need to conduct major combat operations in Iran. Prices recovered some of their earlier losses after Iranian security official Mohsen Rezaei said there were no current negotiations between Tehran and Washington. Attacks continued in the region, including missile launches by Yemen's Houthis and Saudi airstrikes on Sanaa.
3. Demand outlook
The US Energy Information Administration projected global petroleum consumption would fall from a record 104.4 million barrels per day in 2025 to 102.4 million bpd in 2026. The article also said higher interest rates could slow oil demand, while sanctions on Russian energy have helped support prices.
