Oil prices fell on Thursday as traders weighed growing attacks on ships near the Strait of Hormuz against concerns that high fuel costs and a weakening economic outlook could reduce global demand.
Brent crude fell to $104.14 a barrel on Thursday, October 15, 2026, down 1.81% from the previous session, according to the CFD benchmark tracked by The High Street Journal. Despite the decline, Brent remains 70.56% higher than a year ago.
Reuters reported that Brent futures also fell, dropping by more than $2 to around $103.78 a barrel during trading. Prices came under pressure after US officials said Washington was considering easing restrictions on some tankers previously sanctioned for transporting oil. The move could make it easier and cheaper to ship fuel to international markets.
The price decline came despite fresh attacks on vessels in the Middle East and a sharp fall in US crude oil inventories, highlighting the competing pressures facing the market.
Attacks on ships threaten oil supplies
Two commercial vessels sank near the Strait of Hormuz after being hit by projectiles in separate incidents, maritime officials told Reuters on Wednesday.
The attacks came as Iran intensified threats against ships travelling through the waterway in response to a US blockade of Iranian ports and tighter sanctions. Reuters also reported that Iran had been changing its tactics and expanding attacks on commercial shipping in the region.
The Strait of Hormuz is one of the world’s most important routes for oil shipments. Disruptions there can delay deliveries, increase shipping costs and reduce the amount of oil reaching buyers.
The attacks have raised concerns about whether oil exports from the region can continue recovering. The International Energy Agency said crude exports from Gulf producers increased by 4.4 million barrels per day in September, reaching about 75% of levels before the conflict. However, it warned that renewed attacks could threaten further recovery.
US considers easing tanker restrictions
The United States is considering allowing some previously sanctioned tankers to transport oil that is permitted under US rules, a move intended to ease shipping costs and improve fuel availability.
The discussions follow a temporary US move to allow imports of Russian diesel fuel as governments try to manage rising fuel prices.
Sanctioned tankers, often described as part of a “shadow fleet”, have been used to transport oil from countries including Russia, Iran and Venezuela outside conventional Western shipping and insurance arrangements. Allowing more vessels to carry permitted oil could increase the number of ships available and reduce the cost of moving fuel.
However, the proposal remains under consideration and is not yet a confirmed policy change.
IEA warns of falling oil demand
The International Energy Agency expects global oil demand to fall by 2.6 million barrels per day in 2026, as high fuel prices, supply shortages and a weaker economic outlook weigh on consumption.
Its October report also warned that diesel supplies could remain tight into 2027. Diesel is widely used in trucks, farming equipment and industrial operations, meaning shortages can raise transport and production costs.
The agency said global oil supply increased by 2.5 million barrels per day in September to 102.3 million barrels per day, mainly because production from Gulf countries recovered. But renewed attacks on shipping and energy infrastructure threaten that progress.
US crude inventories fall sharply
US crude inventories fell by 11.1 million barrels in the week ended October 9, according to preliminary data from the American Petroleum Institute cited by Reuters.
The decline was much larger than analysts had expected. Inventories of diesel and other distillate fuels also fell, while gasoline stocks increased.
Normally, a sharp drop in crude inventories can support oil prices because it indicates that less oil is being held in storage. However, prices showed little response to the latest figures as traders focused on the broader supply and demand outlook. Official figures from the US Energy Information Administration were expected later on Thursday.
For now, oil markets face competing pressures. Attacks on shipping and falling inventories point to tighter supplies, while weaker demand expectations and possible steps to reduce transport costs are weighing on prices.
