Brent Falls to Two-Week Low
Oil prices fell sharply on Tuesday (July 28th), hitting a two-week low. Brent plunged 4.8% to US$84.09 per barrel, while WTI fell 4.1% to US$79.26 per barrel.
The decline was fueled by hopes that a pause in attacks between the United States and Iran could pave the way for peace talks. In the past three days, Brent prices have fallen by around 16%.
Despite the temporary halt in attacks, differences between the two countries are far from resolved. The Strait of Hormuz remains nearly closed, though it previously carried about a fifth of the world's oil supply.
Iran has also denied negotiating with the United States, contradicting President Donald Trump's assertion that the talks were going well. Oman later offered a management plan for the Strait of Hormuz as a basis for resuming shipping activity.
Supply risks remain looming after Saudi Aramco's Jizan oil processing facility was shut down due to Houthi attacks. The group also continues to disrupt shipping in the Bab el-Mandeb Strait and has claimed responsibility for attacks on Saudi tankers.
Oil prices have the potential to remain depressed as long as the lull in conflict persists and diplomatic opportunities increase. However, low shipping traffic in Hormuz, Houthi attacks, and uncertainty about Russian and OPEC+ supply could still trigger price increases. (arl)
Source: Newsmaker.id
