US-Iran Hostility Pause Boosts Oil Prices Amid Ongoing Geopolitical Risks

Oil prices rebounded on July 29 after the US and Iran paused hostilities, easing immediate concerns over a wider regional conflict. Brent crude oil price today climbed above $86 while WTI crude rose near $82.

The rally was further supported by a decline in US crude oil inventories. However, traders remain cautious over ongoing geopolitical risks in the Middle East.

The latest rally came after US President Donald Trump held talks with Israeli Prime Minister Benjamin Netanyahu as Washington sought to prevent a renewed round of military strikes on Iran. Following the meeting, Israeli officials signaled support for continued diplomatic engagement, stating that all parties preferred reaching a negotiated agreement rather than escalating military action over Iran's nuclear programme.

The prospect of diplomacy helped improve market sentiment after weeks of heightened geopolitical uncertainty. Analysts say oil prices are likely to remain highly volatile and investors will continue tracking diplomatic efforts between the US, Israel, and Iran, crude inventory trends, and any developments affecting shipping through the Strait of Hormuz.