Oil prices declined on Tuesday as the International Energy Agency warned that high prices and supply disruptions from the Iran war could weaken global demand.
U.S. crude and Brent benchmarks both slipped, reflecting concerns that prolonged instability in the Middle East is beginning to curb consumption.
The IEA said the conflict has already caused historic supply shocks and price spikes, adding that global oil demand could contract sharply, potentially marking the steepest drop since the Covid-19 pandemic.
Iran war upends IEA’s global oil market outlook, with demand seen contracting by 80,000 bpd https://t.co/rQYdqyERnZ
— The Globe and Mail (@globeandmail) April 14, 2026
Early signs of reduced fuel use have emerged in the Middle East and Asia, particularly for aviation and industrial fuels. It warned that “demand destruction” could spread further if prices remain elevated.
Markets were also influenced by expectations of renewed U.S.-Iran talks. Vice President JD Vance said negotiations depend on Tehran’s willingness to meet U.S. conditions, particularly on nuclear issues, even as the Trump administration enforces a limited blockade on Iranian ports.
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TIPP Staff
