Oil prices edge lower after strong week; Iran jitters persist

Oil prices dipped marginally in Asian markets on Monday, after surging strongly during the previous week, as concerns surrounding U.S.-Iran relations and the Strait of Hormuz continued to dampen crude demand, according to market reports. Brent oil futures experienced a slight decline of 0.16%, settling at $88.42 per barrel by 9:04 PM ET (1:04 AM GMT), while West Texas Intermediate crude futures saw a marginal decrease of 0.2%, closing at $81.31 per barrel.

The recent surge in Brent oil prices, which exceeded 5% over the past week, was primarily driven by ongoing hostilities between the U.S. and Iran. Tehran's recent attacks on additional energy infrastructure in West Asia, coupled with further slowdown in shipping through the Strait of Hormuz due to Iranian attacks on tankers in the region, exacerbated the situation.

The ongoing conflict expanded to the Red Sea, with Iran-backed Houthis continuing their attacks on ships in the Bab al-Mandab strait. These attacks have raised apprehensions of further destabilization in oil supplies in West Asia. These concerns overshadowed forecasts for reduced global oil demand from major industry bodies, with both the Organization of Petroleum Exporting Countries and the International Energy Administration reducing their demand projections for 2026.