The price of oil fell more than 9% on Monday, July 27th, 2026, as hopes grew that a pause in attacks between the US and Iran could pave the way for a resolution to their ongoing conflict. Brent crude, the global benchmark for oil, dipped below $88 a barrel, a significant reversal from last week when prices had surged above $100.

This decline followed statements from the US ambassador to the United Nations, who said attacks on Iran had been halted for a second consecutive night to "give talks some space." An Iranian army spokesperson confirmed on Sunday that Tehran had ceased "retaliatory" attacks in the region in response.

The conflict had previously caused a sharp rise in oil prices due to the effective closure of the Strait of Hormuz, a critical shipping route that typically carries about 20% of the world's oil and liquefied natural gas (LNG). When Iran and the US signed a memorandum of understanding in June to halt military operations and reopen the strait, oil prices fell back to pre-war levels around $70 a barrel.

However, the ceasefire collapsed earlier this month, reigniting fears over global energy supplies and pushing prices back up. Last week, oil hit $100 a barrel for the first time since May, fueled by additional concerns after Houthi militia in Yemen attacked oil tankers in the Red Sea, threatening a key export route used by Saudi Arabia to bypass the Strait of Hormuz.

Susannah Streeter, chief investment strategist at Wealth Club, noted that markets remain "cautious given the twists and turns during this conflict." She added that "there is still significant uncertainty baked into these prices and a reticence about whether negotiations will lead to a lasting breakthrough."