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Why Oil Prices Stayed Stable Despite U.S.–Iran War · GNN Daily Breaking News

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  Speaker 1: For months, analysts warned that a prolonged you Dot s
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  Speaker 1: DOT Iran conflict could send oil prices soaring past two
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  Speaker 1: hundred dollars a barrel. Yet, five months into the war,
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  Speaker 1: prices remained surprisingly stable, hovering near seventy dollars, close to
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  Speaker 1: pre war levels. The first factor is demand. China, the
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  Speaker 1: world's largest oil importer, has sharply reduced crude purchases, cutting
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  Speaker 1: volumes to their lowest in nearly a decade. Its petrochemical
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  Speaker 1: sector scaled back, Fuel exports were curbed, and electric taxis
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  Speaker 1: replaced personal cars in many cities. This demand compression east
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  Speaker 1: pressure on global markets, off setting supply disruptions. Second, US
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  Speaker 1: production has surged. By April twenty twenty six, American output
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  Speaker 1: hit nearly thirteen point nine three million barrels per day,
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  Speaker 1: a record high. Washington also coordinated a historic release of
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  Speaker 1: four four one hundred million barrels from the Strategic Petroleum Reserve,
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  Speaker 1: the largest in history. Together, these measures flooded the market
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  Speaker 1: with supply, preventing shortages. Third, golf producers found workarounds. Although
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  Speaker 1: the Strait of Hormas was disrupted by fighting, Saudi Arabia
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  Speaker 1: redirected flows through pipelines to Yanbou on the Red Sea,
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  Speaker 1: while the UAE expanded exports via fujaira port outside Hormas.
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  Speaker 1: These re routes helped stabilize exports and reassure markets. Market
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  Speaker 1: sentiment also played a role. President Trump repeatedly hinted at
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  Speaker 1: peace agreements and reopening Hormas, wrong footing traders. Hedge funds
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  Speaker 1: reduced fulish bets, cooling speculative spikes. Liquidity dropped, making traders
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  Speaker 1: reluctant to push prices higher. Finally, inventories have been tapped worldwide.
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  Speaker 1: By May, more than one point one billion barrels of
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  Speaker 1: crude had been drawn down from commercial stocks and strategic reserves,
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  Speaker 1: equivalent to about ten days of global consumption. These draw
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  Speaker 1: downs acted as a buffer, keeping supply flowing even as
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  Speaker 1: conflict raged. The result, Brent crude peaked at one hundred
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  Speaker 1: twenty six dollars early in the conflict, far below predictions
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  Speaker 1: of one hundred fifty to two hundred dollars. Prices averaged
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  Speaker 1: one hundred one dollars between February and June, before retreating
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  Speaker 1: to seventy dollars in July, but risks remain buffers are
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  Speaker 1: thinning reserves are running low, and re routing options are limited.
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  Speaker 1: If demand rebounds or reserves are depleted, prices could spike sharply.
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  Speaker 1: For now, however, weak demand and strong supply have kept
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  Speaker 1: oil markets studied despite war. This stability underscores how global
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  Speaker 1: energy dynamics are shaped not only by conflict, but also
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  Speaker 1: by consumption patterns, production surges, and strategic planning. The war
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  Speaker 1: has disrupted flows, but the world's ability to adapt has
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  Speaker 1: prevented the chaos many feared.