Oil prices fell by more than $1 a barrel on Thursday after OPEC (producer group) lowered its 2026 global oil demand growth forecast and the IEA (energy watchdog) projected a deeper contraction in consumption this year, citing disruptions tied to the U.S.-Israeli war on Iran. Brent crude dropped $1.29, or 1.5%, to $87.69 a barrel by 0100 GMT, while U.S. West Texas Intermediate fell $1.30, or 1.6%, to $81.97. The market also absorbed a larger-than-expected rise in U.S. crude inventories, with EIA (U.S. energy statistics agency) data showing stocks climbed 17.4 million barrels to 424.4 million barrels in the week ended August 7, versus expectations for a 1.4 million-barrel draw. Still, supply concerns limited losses as no progress was reported in Iran-U.S. talks to revive the interim deal agreed in June, and attacks on shipping through the Strait of Hormuz and Bab el-Mandeb Strait underscored the risk to Middle Eastern oil and gas flows.