LONDON: Oil prices slid by more than two per cent on Thursday on worries that inflation and a slowing economy could weigh on oil demand even as the growing conflict between the US and Iran limits supply by delaying a full reopening of the Strait of Hormuz.
About 20pc of global oil supplies passed through the strait before the Iran war. Brent futures fell $1.92, or 2.5pc, to $76.10 a barrel. US West Texas Intermediate crude fell $1.61, or 2.2pc, to $71.91.
On Wednesday, Brent closed at its highest since June 19 and WTI closed at its highest since June 22.
“Our estimated oil flows from the Persian Gulf recovered to above 80pc of pre-war flows within the first 10 days after Hormuz reopening as trapped tankers rushed to leave the Persian Gulf, but retreated to the low-70pc of normal following recent attacks on tankers,” analysts at US bank Goldman Sachs said in a report.
Minutes of the Federal Reserve’s June 16 to 17 meeting showed policymakers’ concerns about inflation mounted last month and they “generally expected labour market conditions to remain stable in the near term, with the unemployment rate staying close to current levels.”
New York Federal Reserve President John Williams said on Thursday he did not expect a sustained rise in energy prices for the rest of the year despite the resumption of hostilities in the Middle East.
Published in Dawn, July 10th, 2026