Global crude oil futures extended losses on Tuesday, July 28, 2026, after a temporary pause in hostilities between the United States and Iran raised hopes for regional de-escalation that could stabilize disrupted Middle East energy markets.
International benchmark Brent crude futures for September delivery dropped 2.07 percent to $86.53 per barrel. Meanwhile, U.
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S. West Texas Intermediate crude futures for September delivery fell 1.72 percent to $82.19 per barrel.
Although officials in Tehran rejected reports of agreeing to a formal 10-day ceasefire with Washington, military engagements between the two nations came to a temporary standstill following reports about diminished U.
S. munitions reserves.
According to a report by The New York Times, President Donald Trump had considered ordering a major attack on Iran last week before opting to put those military maneuvers on hold over stockpile concerns.
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Addressing reporters aboard Air Force One while traveling to Michigan on Monday, Trump refuted claims that the military was running low on arms, asserting that the nation maintained sufficient ordnance.
Analysts Warn of Remaining Risks
Market analysts from the Commonwealth Bank of Australia noted on Tuesday that while the drop in prices reflects reduced fear of immediate escalation, risks affecting global energy distribution remain high due to potential shipping disputes.
"A pause in US Iran hostilities appears to have weakened expectations that the conflict will escalate to include significant attacks on civilian and energy infrastructure," the bank stated in a note, warning that friction over the Strait of Hormuz could reignite conflict.
Market researchers at Goldman Sachs pointed out in a Tuesday briefing that Brent crude is expected to moderate to $80 per barrel by year-end if the Strait of Hormuz fully reopens during the fourth quarter.
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"But Red Sea disruptions and attacks on Saudi oil infrastructure may pose a new source of upside risk for crude and refined products prices," the Goldman Sachs analysts added.
