FX.co ★ Brent Falls to $104

Brent crude slipped to about $104 a barrel on Thursday as traders balanced escalating shipping risks in the Strait of Hormuz against signs of weakening global demand. The sinking of a Singapore-flagged vessel in the strategic waterway, coupled with ongoing Iranian threats against US warships, intensified fears of a protracted regional conflict. At the same time, Houthi missile and drone strikes on Saudi Arabia heightened worries over possible export disruptions, with some tankers reportedly steering clear of their usual loading points. The IEA cautioned that tightness in the diesel market could extend into next year, even as it projected a 2.6 million barrel per day contraction in global oil consumption in 2026. It also reported that land-based inventories have dropped to near their lowest levels in at least a decade. The latest industry figures showed US crude stocks fell by 11.1 million barrels last week.