Crude oil prices fell below $100 a barrel on Friday after Iranian state media reported plans for talks with Gulf states in Oman, signaling that diplomatic efforts are emerging despite a sharp escalation in tensions over the past week. Foreign ministers from the six-member Gulf Cooperation Council are expected to meet their Iranian counterpart on Monday to discuss a possible temporary arrangement for managing shipping through the Strait of Hormuz.
At the same time, the International Energy Agency sharply lowered its outlook for global oil demand, projecting a 2.5 million-barrel-per-day contraction in 2026—the largest annual decline since the Covid-19 pandemic—as higher prices and tighter supplies curb consumption. The IEA cautioned that demand could weaken further if the conflict persists, while OPEC reduced its 2026 demand growth forecast for a fifth consecutive time. Despite Friday’s pullback, crude posted a second consecutive weekly gain as ongoing threats from Houthi forces to Saudi Arabia continue to fuel supply concerns.
