Oil Prices Plunge Amid U.S.-Iran Military Standdown

Oil prices plummeted on July 28 as tensions between the United States and Iran subsided. The pause in military attacks led to a decline in crude oil benchmarks, with Brent falling by over $1 to approximately $86.89 per barrel. U.S. West Texas Intermediate crude dropped to roughly $81.16, marking its lowest level since July 20.

The previous day's airstrikes had already caused an 8% drop in prices. The current lull in hostilities follows a 13-day U.S. bombing campaign against Iranian targets. Both governments have warned that military operations could resume if diplomatic efforts fail.

Ships are still navigating the Strait of Hormuz with caution, as Iran and Oman discuss arrangements for safer passage. Reduced tanker movements, higher insurance costs, and longer shipping routes continue to affect energy deliveries.