Oil Prices Tumble Over 5% as Gulf Tensions Ease

Commodity markets traded mixed on July 27th as tensions in the Gulf region eased.

Crude oil prices tumbled over 5% after a pause in hostilities around the Strait of Hormuz, with Brent crude falling to $91.73 a barrel and U.S. WTI crude dropping to $84.45.

The decline in oil prices reduced concerns about energy-driven inflation, leading markets to trim expectations of further interest rate hikes by the US Federal Reserve ahead of its policy meeting this week.

Gold rebounded more than 1% as softer oil prices improved sentiment toward safe-haven assets, with gold futures rising to $4,106.10 per ounce and silver climbing 2.7% to $59.72 an ounce.