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WTI drops toward $71 after war-fear premium fades
WTI was pressured by New York selling after an earlier rise, while the IEA forecast points to crude and refined demand falling in 2026.
West Texas Intermediate crude slipped about 1% to trade near $70.98 after rising to $72.83 in the European morning, only to face a wall of selling in New York that pushed the contract to a $70.70 session low within about two hours. FXStreet described the move as part of a broader fading of the escalation premium built earlier in the week from roughly the $68.00 base.
The price action follows renewed risk signals around the Strait of Hormuz, with reports that US forces struck Iranian targets more than 170 times in two days, Iran fired ballistic missiles at a base in Jordan, and attacked commercial vessels near the chokepoint. Tanker traffic through the area has reportedly slowed to a trickle, leaving hundreds of ships waiting for clearance.
Markets also took in conflicting ceasefire messaging, with President Trump saying the ceasefire is over, while Iranian sources rejected rumors of fresh talks next week. FXStreet added that Iran’s former supreme leader was buried on Friday, but the market sold that as well.
On the fundamentals, the International Energy Agency forecast cited by FXStreet showed worldwide demand for crude and refined products falling by 1.0 million barrels per day in 2026, the first annual decline since 2020, with the drop concentrated in products and regions hardest hit by disruptions at Hormuz. Supply was described as healing faster than consumption, with flows through the strait rebounding and output still 9.4 million barrels per day below pre war levels.
Latest closeWTI crude $71.84 ▼2.3%