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Mon, 27 Jul 2026

Mon, 27 Jul 2026 Oil price dives as US and Iran pause attacks

The US says attacks on Iran have been halted to give "talks some space", raising hopes of a resolution to the conflict.
Global benchmark Brent crude had risen above $100 a barrel last week due to fears over global energy supplies. The collapse of the ceasefire earlier this month reignited concerns, with added worries after Houthi militia attacked oil tankers in the Red Sea. Despite the sharp fall, market uncertainty remains as negotiations between the US and Iran may not lead to a lasting breakthrough. Wholesale gas prices have also been rising recently, with European gas storage at historic lows and supply security for this winter "at risk". If the Strait of Hormuz remains closed for two months, storage will be lower than 70% by November, compared to a five-year average of 90%. Low European inventories, strong Asian demand, and limited new LNG supply growth are expected to drive up prices through winter and into 2027. The conflict has also pushed up the cost of fuel such as petrol and diesel in many countries, potentially leading to higher inflation rates and interest rate hikes.