Oil Prices Fall 2% as Economic Slowdown Concerns Outweigh U.S.-Iran Tensions

International oil prices fell by approximately 2% on July 9 (local time), as concerns over shrinking oil demand due to an economic slowdown overshadowed fears of supply disruptions caused by tensions between the United States and Iran.

On the ICE Futures Europe exchange, the settlement price for Brent crude for September delivery dropped 2.20% from the previous session to $76.30 per barrel.

On the New York Mercantile Exchange, the settlement price for West Texas Intermediate (WTI) crude for August delivery fell 1.96% from the previous session to $72.08 per barrel.

The minutes from the U.S. Federal Reserve's June Federal Open Market Committee (FOMC) meeting, released the previous day, indicated that concerns over inflation have intensified.

The prospect that a high-interest-rate environment will be maintained or that additional rate hikes may occur fueled concerns that an economic slowdown could dampen demand for crude oil, thereby dragging down prices.

Furthermore, China's Producer Price Index (PPI) for June rose 4.1% year-on-year, marking its highest level in four years. This raised concerns that increased cost burdens for manufacturers and persistent weakness in domestic demand would further dampen oil demand.

However, the normalization of the Strait of Hormuz has been delayed due to military exchanges between the U.S. and Iran, leading to a renewed decline in oil shipments. Additionally, supply instability stemming from drone attacks in Ukraine and Russia's restrictions on diesel fuel exports provided a floor for oil prices.
※ Please note: This article was translated by AI and may contain errors.