US and Iran's Military Strike Halt Sends Oil Prices into Free Fall

Oil prices eased on July 27 after the US and Iran temporarily halted launching military strikes in the Persian Gulf. The Associated Press reported that oil prices soared earlier in July as fighting intensified in the Middle East, amid concerns that a return to all-out war would slow the global flow of crude oil. As a result, the price for a barrel of Brent crude oil to be delivered in September fell 4.9% to $92.02 shortly after trading resumed. This decline followed a 3.9% drop on July 24. The current average price for a gallon of regular gasoline in the US is $4.11, up from $3.90 a month ago and just $3.15 in 2025, according to AAA. Oil market traders are buying and selling contracts for barrels of oil to be delivered months in the future, which has caused prices for oil deliveries in October to drop by 4.6% to $87.48.