Oil prices edged up on Wednesday amid ongoing attacks on ships in the Middle East and a stalemate in talks to end the U.S. war with Iran. However, gains were limited after analysts cut their forecasts for global oil demand in 2026. Brent crude futures rose 7 cents to $88.98 a barrel, and U.S. West Texas Intermediate crude gained 7 cents to $83.27.
Prices rose after a senior Iranian source told Reuters that there had been no talks between Iran and the United States on extending the ceasefire because, from Tehran’s perspective, the agreement had no start date and therefore there was nothing to extend. The continued rise in oil prices comes amid growing market doubts that a deal can be reached anytime soon that would ease disruptions to oil supplies from the region or prevent a new escalation of the conflict.
Oil futures came under pressure after analysts revised down their oil-demand forecasts amid stalled talks between the United States and Iran. The Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand growth in 2026 to 580,000 barrels per day, its monthly oil market report said. The International Energy Agency (IEA) also lowered its demand forecasts for 2026 and now expects a decline of 1.6 million barrels per day this year.