Oil Prices Plummet Amid Diplomatic Hopes

Oil prices continued to decline on July 28 amid hopes of a diplomatic solution to the conflict between the US and Iran, which has caused disruptions to global energy flows.

The decline follows losses in the previous session, where benchmark contracts fell by around 8%, after the US suspended its air campaign against Iran over the weekend.

Edward Meir, an analyst at Marex, pointed out that the main reason prices haven't risen is the decline in demand, particularly in Asia, despite a decrease in shipping activity, according to Reuters.

The US crude oil inventory report from the American Petroleum Institute is expected later today, ahead of the official data release from the US Energy Information Administration on July 29.