Oil Prices Rebound Amid Eased Tensions Between US and Iran

Crude oil prices rebounded on Wednesday, July 29th, as tensions between the US and Iran eased. Brent crude futures rose by $2.71, or 3.2%, to trade at $86.80 a barrel after plummeting over 14% in the previous three sessions. The increase was also driven by a decline in US crude oil inventories.

The rebound in oil prices came as the United States and Iran paused hostilities following President Donald Trump's meeting with Israeli Prime Minister Benjamin Netanyahu. Israel indicated that it supports diplomatic engagement to prevent Iran from acquiring nuclear weapons, rather than resorting to military action.

Security concerns persist in the region, however, as Saudi Arabia's Defense Ministry reported intercepting drones targeting oil facilities in the country's Eastern Region. The drones were launched by Iran-backed militias operating from Iraqi territory.