Europe Economy Faces Recession Risk as Energy Costs and Weak Manufacturing Weigh on Growth 
South Korea Q2 GDP Beats Forecasts as AI Chip Exports Drive Growth 
US Dollar Posts Best Weekly Gain in Over a Month as Middle East Tensions Boost Safe-Haven Demand 
Japan Manufacturing Growth Holds Strong in July Despite Middle East Uncertainty 
BOJ Seen Holding Rates at 1% While Keeping Inflation Risk Warning 
Canada Vows Trade Fight as Trump Imposes 50% Tariffs 
Iran Rejects U.S.-Backed Ceasefire as Trump Escalates Military Threats, Oil Tops $100 
Houthi Attacks on Saudi Oil Sites Raise Fears of Wider Middle East Conflict Despite U.S. Strike Pause 
Japan’s Nikkei Slides Over 2% as Alphabet Selloff Sparks AI Spending Concerns 
Trump Threatens Iran With 'Major Military Punishment' as Red Sea Attacks Push Oil Above $100 
Oil Prices Pull Back After Two-Week Rally as Middle East Supply Risks Persist 
US-Mexico USMCA Talks Advance as Auto Rules Remain Major Sticking Point 
Trump Says No Decision on Major Iran Strikes as U.S.-Tehran Talks Intensify 
Gold Price Holds Above $4,130 as Fed Rate Outlook and Middle East Tensions Support Safe-Haven Demand 
Asian Stocks Slide as Oil Tops $100, Middle East Conflict Fuels Inflation Fears 
Nasdaq Drops as AI Earnings, Oil Surge and Middle East Tensions Weigh on Wall Street 
Gold Price Holds Weekly Gain as Middle East Tensions and Fed Rate Outlook Drive Market 
Oil Prices Slide on Demand Concerns
Oil prices fell sharply in Asian trading on Tuesday, continuing recent declines as worries over weakening global demand weighed heavily on the market. The drop was also influenced by reports that Israel would not target Iranian oil facilities, reducing fears of an escalation in Middle East tensions.
Brent crude futures fell by 3% to $75.16 per barrel, while West Texas Intermediate (WTI) crude dropped to $71.03 per barrel, both extending losses from earlier in the week.
China's Declining Demand Adds Pressure
China's fifth consecutive monthly decline in oil imports has sparked concerns about slowing demand. Traders were underwhelmed by recent economic support measures announced by China's Ministry of Finance, which lacked details on the timing and scale of efforts to boost consumption. China's weak economic conditions have further diminished its appetite for crude, pressuring oil prices.
Additionally, the Organization of Petroleum Exporting Countries (OPEC) downgraded its global oil demand forecasts for the third month in a row. OPEC now expects a growth of 1.93 million barrels per day (bpd) in 2024, down from earlier estimates of 2.03 million bpd. The organization cited China's economic slowdown as a key factor in this revision.
Middle East Tensions Ease
Further weighing on oil prices, a report on Monday indicated that Israel will not attack Iran’s oil or nuclear facilities. This news has reduced the risk premium attached to oil prices, which had surged following Iran’s missile strike on Israel earlier in October. Traders now anticipate a less severe escalation in the region's conflict, providing some relief to the oil market.
