Oil Prices Plummet as US and Iran Pause Attacks Amid Ongoing Tensions

Oil prices plummeted on July 28 as the US and Iran maintained a pause in military attacks. The decline comes after a 13-day bombing campaign by the US against Iranian targets, which has now been suspended. According to reports, President Donald Trump said talks with Iran were going well, although Iranian officials denied that direct negotiations with Washington were taking place.

The Brent crude benchmark fell by more than $1 to around $86.89 per barrel, while U.S. West Texas Intermediate crude dropped to roughly $81.16, both benchmarks hitting their lowest levels since July 20. Prices had already fallen about 8% during the previous session after the US suspended airstrikes.

Shipping through the Strait of Hormuz remains below normal levels due to the ongoing tensions, with Iran and Oman discussing arrangements for safer vessel passage. The waterway is a major route for oil and liquefied natural gas exports from the Persian Gulf, and any disruptions can have significant impacts on energy deliveries.