Oil prices extended their slide Tuesday as a pause in fighting between the United States and Iran held for another day, easing immediate concerns about supply disruptions in the energy-rich Middle East.
Brent crude futures for September delivery fell more than 2% to $86.52 a barrel, while U.S. West Texas Intermediate crude futures for September dropped 2.3% to $80.71 a barrel.
The decline reflects a temporary de-escalation in tensions after days of heightened conflict. While Tehran has publicly rejected reports of agreeing to a formal 10-day ceasefire with Washington, hostilities have nevertheless paused for now.
Trump Sidelines Attack Plans
According to The New York Times, President Donald Trump set aside plans for what he described to Axios on Friday as a “massive attack” on Iran. The reversal came amid concerns about depleted U.S. munitions stockpiles following sustained military operations.
Speaking to reporters aboard Air Force One on Monday while traveling to Michigan, Trump pushed back against suggestions that the United States was running short on weapons. The president insisted the military had “plenty” of ordnance available.
The conflicting signals underscore the uncertainty surrounding the conflict’s trajectory and its potential impact on global energy markets.
Market Relief Tempered by Caution
The Commonwealth Bank of Australia noted Tuesday that the recent decline in crude prices reflects market relief over reduced expectations for immediate escalation between the two nations.
However, the bank cautioned that threats to global energy supplies remain elevated. In a note to clients, Commonwealth Bank warned that a pause in hostilities “appears to have weakened expectations that the conflict will escalate to include significant attacks on civilian and energy infrastructure,” but emphasized that the situation remains fragile.
The bank specifically highlighted ongoing disagreements over the Strait of Hormuz, a critical shipping lane through which roughly one-fifth of global oil supplies pass. Any disruption to this vital waterway could send energy prices sharply higher.
“Disagreements over the vital Strait of Hormuz shipping lane could see hostilities reignite,” Commonwealth Bank said, suggesting the current calm may prove temporary.
Fragile Calm in Energy Markets
The pullback in oil prices represents a significant shift from last week’s heightened anxiety, when the prospect of a major U.S. military strike on Iranian targets threatened to disrupt Middle Eastern oil production and export infrastructure.
Energy traders are now weighing the durability of the current pause against the risk that fighting could resume with little warning. While both Brent and WTI remain well above their yearly lows, prices have retreated from the spike triggered by the initial outbreak of hostilities.
The situation continues to evolve rapidly, with markets closely watching for any signs of renewed military action or diplomatic progress that could provide a more durable resolution to the standoff.
Source: www.cnbc.com — https://www.cnbc.com/2026/07/28/oil-price-today-wti-brent-us-iran-hormuz.html
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