Brent crude falls below $88, ending six-session rally

Brent crude fell below $88 a barrel on Thursday, ending a six-session rally as investors shifted their focus toward weakening demand prospects and continued disruption around the Strait of Hormuz. The International Energy Agency lowered its global oil demand outlook, warning that the prolonged Middle East conflict and higher prices are increasingly weighing on consumption. 3 million barrels a day below year-earlier levels in July. 4 million barrels last week, their largest weekly increase since January 2023.

Diplomatic efforts between the US and Iran to end the conflict and reopen Hormuz have made little progress, with attacks on shipping continuing and rhetoric intensifying. Despite Thursday’s decline, Brent remained nearly 5% higher for the week.