Attacks Halt, Oil Prices Plunge
Oil prices fell on Monday (July 27) after the United States temporarily halted attacks on Iran. Brent crude fell 8.7% to close at US$88.36 per barrel, its biggest daily drop since April 17.
West Texas Intermediate (WTI) crude also slumped 7.5% to US$82.61 per barrel. The decline occurred after President Donald Trump said the pause in attacks was granted to reopen negotiations with Iran.
Iran also withstood retaliatory attacks and held talks with Oman regarding the Strait of Hormuz. Hopes of reopening the shipping lane helped ease concerns about global oil supply.
Supply pressures eased after oil loading resumed at the Caspian Pipeline Consortium terminal on Russia's Black Sea coast. The terminal is a key export route for Kazakhstan's oil to buyers in Europe.
Despite the sharp drop, oil prices have still rallied more than 20% so far this month. Risks remain high as the Houthi group threatens Saudi export routes in the Red Sea, while shipping traffic in the Strait of Hormuz remains far below normal.
Oil prices could remain under pressure if US-Iran talks yield progress and shipments return to normal. However, a new attack on energy facilities or shipping lanes could quickly push Brent and WTI higher. (arl)
Source: Newsmaker.id