Oil Prices Plunge as US and Iran Halt Hostilities

Global crude oil prices plummeted by around 5% on July 27 after the US and Iran paused their hostilities. The decline reversed recent gains driven by concerns over supply disruptions in the Middle East.

Brent crude dropped to $91.89 per barrel, falling by $4.89 (5.05%) from its previous price. West Texas Intermediate (WTI) crude also declined, down by $4.67 (5.23%) to $84.64 per barrel.

The recent escalation in tensions between the US and Iran had caused oil prices to surge to around $100 per barrel for Brent crude. The Strait of Hormuz, a critical shipping route, was at risk of being disrupted due to the conflict. Saudi Arabia's oil exports to Asia via the Bab al-Mandeb Strait were also affected.