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[BUSINESS] · United States, Iran, Saudi Arabia, United Arab Emirates, Russia · 100 sources

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Oil markets face volatility amid Strait of Hormuz tensions and lowered demand forecasts

Global oil markets are experiencing significant volatility driven by geopolitical tensions in the Middle East and revised demand forecasts. The ongoing conflict involving Iran has created severe disruptions in the Strait of Hormuz, a critical maritime passage. Recent data indicates that vessel transits through the strait have dropped to recent lows, with some reports noting only eight vessels passing through on a single day.

In response to these supply risks, the International Energy Agency (IEA) and OPEC have both lowered their global oil demand growth projections for 2026. The IEA specifically anticipates a decrease in demand of 1.6 million barrels per day due to the Hormuz closure and high fuel prices. OPEC has also revised its 2026 growth forecast downward to 580,000 barrels per day.

On the supply side, OPEC+ has approved a production quota increase of approximately 188,000 barrels per day starting in September. Meanwhile, Venezuela reported an increase in crude production, reaching an average of 1.2 million barrels per day in July.

Market prices remain sensitive to political statements and strategic maneuvers. While President Donald Trump has asserted U.S. control over the Strait of Hormuz, the U.S. Energy Information Administration (EIA) has raised its 2026 Brent crude forecast to $87 per barrel, citing navigation constraints. Additionally, the U.S. has seen a sharp rise in crude inventories, with reports indicating a build of approximately 9.1 million barrels.

Entities

Ardea · Carabinieri · Davide Tabarelli · Donald Trump · EIA · Energy Information Administration · Garante per la Sorveglianza Prezzi · Guardia di Finanza · International Energy Agency · Iran · Iran · Italy

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