Skip to content

Oil Demand Risks Rise Amid Iran War

Pic via @ReutersChina

President Donald Trump’s timeline to end the Iran war within weeks may not be enough to prevent lasting damage to global oil demand, according to analysts cited by CNBC.

While Trump has projected a two to three week window, markets remain skeptical as conflict-driven supply disruptions persist.

The report said oil prices have surged sharply since the war began, fueled by the closure of the Strait of Hormuz. Analysts warn that prolonged high prices could trigger “demand destruction,” where consumers reduce fuel usage due to rising costs.

According to Goldman Sachs, early signs of reduced demand are already visible in sectors such as aviation and petrochemicals. Experts also cautioned that restoring oil supply could take much longer than anticipated, even if fighting ends soon.

Governments are beginning to intervene to manage energy shortages. Analysts said the duration of elevated prices will determine whether demand declines become permanent, raising concerns about broader economic fallout.

Also Read:

Why Are Oil Prices Rising Again?
Global oil prices surged and stock markets declined after renewed tensions in the Iran war raised fears of escalation, reported by CNN. Brent crude rose over 7 percent to cross $108 per barrel, while U.S. benchmark WTI also climbed sharply. The report said investor sentiment weakened after President Donald

Comments

Latest