Oil prices fell more than 5% on Monday after the United States and Iran suspended attacks following two weeks of reciprocal strikes, according to a report published on July 27, 2026. The pause raised hopes for a diplomatic solution that could ease the conflict and allow shipping to resume through the Strait of Hormuz. At 08:04 GMT, Brent crude futures were down about 5.9% at $91.08 a barrel.

US West Texas Intermediate crude was down 5.4% at $84.51 a barrel. Both markets were trading at their lowest levels after three weeks of gains. Supply reductions through Hormuz had pushed Brent to $100 a barrel, while the conflict later spread to the Red Sea, disrupting Saudi oil exports to Asia through the Bab el-Mandeb Strait.

US Ambassador to the United Nations Mike Waltz said President Donald Trump paused US attacks to allow more time for diplomatic talks. Analysts cautioned that shipping through Hormuz may normalize slowly and only partially. Kpler data showed fewer than 10 cargo vessels a day crossed the strait over the weekend. Continued Red Sea disruption and Ukrainian drone strikes on Russian ships and refineries could keep supply risks and global inflation concerns elevated.