London, July 27 (V7N) – Global crude oil prices fell by around 4 percent on Monday after the United States and Iran suspended military operations following two weeks of hostilities, raising hopes that tensions in the Middle East could ease and shipping through the Strait of Hormuz return to normal.
According to Reuters, Brent crude dropped $3.96, or 4.1 percent, to $92.82 per barrel on Monday (July 27). During trading, the benchmark briefly fell below the $90 mark.
Meanwhile, US West Texas Intermediate (WTI) crude declined $4.02, or 4.5 percent, to $85.29 per barrel. After recording gains for three consecutive weeks, both benchmark oil prices fell to their lowest levels in nearly a week.
Oil prices had surged in recent weeks amid concerns that the conflict between the United States and Iran could disrupt energy supplies through the Strait of Hormuz. The spread of hostilities to the Red Sea also affected Saudi oil exports to Asia via the Bab al-Mandeb Strait, pushing Brent crude to as high as $100 per barrel at one stage.
US Ambassador to the United Nations Mike Waltz said on Sunday (July 26) that President Donald Trump had decided to temporarily suspend US military strikes to allow additional time for diplomatic efforts.
Market analysts said the absence of new military action by either Washington or Tehran provided the first tangible sign of de-escalation in the conflict, prompting investors to reduce concerns over potential supply disruptions and driving oil prices sharply lower.
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