Crude oil slipped to $100 a barrel on Friday but still ended the week up 9%, as investors weighed diplomatic efforts to ease tensions in the Strait of Hormuz against ongoing conflict across the Middle East. Gulf foreign ministers are due to meet their Iranian counterpart in Oman on Monday in a bid to secure backing for a temporary arrangement to manage shipping through the strategic waterway.
At the same time, the International Energy Agency sharply cut its oil-demand outlook, projecting a contraction of 2.5 million barrels a day in 2026—the steepest annual decline since the Covid-19 pandemic—as higher fuel prices and tighter supplies curb consumption. The IEA warned that demand could fall even further if the conflict involving Iran drags on. OPEC has also lowered its forecast for 2026 demand growth for the fifth consecutive time.
However, renewed advances by Iran-backed Houthi militants toward the Bab al-Mandeb Strait have revived concerns about potential disruptions to global oil supplies.
