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GLOBAL GLOBAL · 1 MIN READ

Oil prices rise amid Middle East tensions despite weaker demand forecasts

Oil prices edged up on August 12 as attacks on ships in the Middle East persisted and talks to end the Iran conflict reached a deadlock.

Oil prices edged up on August 12 as attacks on ships in the Middle East persisted and talks to end the Iran conflict reached a deadlock. Brent crude futures closed at $88.98 per barrel, up 7 cents, while U.S. West Texas Intermediate crude also rose 7 cents to settle at $83.27, according to livemint.com.

The price increase followed a statement from a senior Iranian source who told Reuters that no discussions were underway between Iran and the U.S. to extend their ceasefire. The source explained that Tehran viewed the ceasefire deal as having no official start date, making an extension irrelevant. Despite these tensions, global oil demand forecasts for 2026 were lowered by forecasters, limiting the upward price movement.

The rise in oil prices comes amid ongoing geopolitical risks in the Middle East, which have historically influenced crude markets. The deadlock in U.S.-Iran negotiations adds uncertainty to supply stability. However, the impact on prices was tempered by revised projections indicating weaker global oil demand this year, reflecting broader economic concerns and energy transition trends.

Brent crude futures settled at $88.98 per barrel on August 12, marking a modest gain amid the complex interplay of geopolitical tensions and demand outlooks, as reported by livemint.com.

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