Oil Prices Slip as Traders Weigh Demand Concerns and Iran–U.S. Diplomatic Signals

Oil prices edged lower as traders weighed potential demand destruction against ongoing geopolitical uncertainty tied to US–Iran relations, according to market reports.

Global crude prices have been fluctuating amid geopolitical uncertainty.

West Texas Intermediate (WTI) crude fell about 2.7%, trading above $90 per barrel, while Brent crude closed near $93 per barrel, Jake Conley reported for Yahoo Finance.

Analysts noted that geopolitical tensions remain elevated, particularly around the Strait of Hormuz, a critical global oil shipping route.

Despite diplomatic discussions between the United States and Iran, progress has been limited. Markets also continue to monitor broader regional instability, including tensions involving Israel and Lebanon.

On the demand side, concerns are growing over weakening consumption. China’s crude imports reportedly dropped to multi-year lows in May as refinery activity slowed, adding pressure to global demand forecasts.

Some analysts warn that persistent high prices may accelerate demand destruction, particularly in major importing economies.

“Global demand destruction continues to expand,” said Dennis Kissler of BOK Financial Securities, noting that markets are struggling to balance tighter supply risks with weakening consumption.