Why are oil prices steady despite escalating Middle East tensions and a rejected ceasefire in Lebanon?

Oil prices were little changed on Friday after sharp declines in the previous session, as prospects dimmed for a near-term end to the U.S.-Israeli war with Iran following Hezbollah's rejection of a U.S.-brokered ceasefire in Lebanon; Iran has made a ceasefire in Lebanon a condition for any peace deal with Washington, and although both Brent and WTI crude posted their first weekly gain in three weeks—WTI up more than 6%—the market remains caught between ongoing conflict, limited traffic in the Strait of Hormuz (where a fifth of the world's oil passes), and analysts' concerns over falling global oil inventories that could trigger a price spike in Q3.

What is OPEC's current stance on global oil demand growth amid the Middle East conflict and Strait of Hormuz disruptions?

OPEC is sticking to its oil demand growth forecast of 1.2 million barrels per day for this year, according to Secretary General Haitham Al Ghais, despite the Middle East conflict and closure of the Strait of Hormuz.

Oil Prices Steady Amid Uncertainty Over US-Iran Peace Deal

Jun 4, 2026

Oil prices stabilized near $95 per barrel as Middle East tensions complicated US-Iran peace talks. Analysts monitor potential inventory drops and OPEC forecasts amidst ongoing regional conflict affecting global supply routes.

reuters

2026-04-29

Fed Rate Decision Looms as Oil Prices Spike on Geopolitical Tensions

2026-05-04

Treasuries Start Week Under Pressure as Oil Prices Resume Climb

2026-05-12

US Consumer Prices Rise Further on Oil Price Surge

2026-05-26

Oil Prices Drop on Iran Peace Hopes; Markets Mixed Amid Fed Uncertainty

2026-06-04

Oil Prices Steady Amid Uncertainty Over US-Iran Peace Deal