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Oil prices fall as US and Iran halt attacks on Strait of Hormuz

2026-07-27 08:34:00, Kosova & Bota CNA

Oil prices fell in early trading on Monday, falling further from a two-month high reached last week, after the United States and Iran failed to launch military strikes in the Persian Gulf.

The price for a barrel of Brent crude oil to be delivered in September fell 4.66% to $92.27, while U.S. crude oil, or WTI, fell 5.02% to $84.83 a barrel.

Brent crude, the international benchmark, briefly hit $102 a barrel last week. That was $30 more than the most-traded Brent contract was selling for at the start of the month and the highest it had been since May.

Oil prices rose this month due to escalating fighting in the Middle East and concerns that a return to all-out war would further slow the global flow of crude.

The ability of tankers to safely pass through the Strait of Hormuz has been a major concern for the oil market since the US and Israel attacked Iran in late February. The narrow strip of water off Iran's coast is the route through which a fifth of the world's oil typically leaves the Persian Gulf and heads to customers around the world, and the conflict has largely halted maritime traffic.

Oil producers have since sought alternative routes, but they too are under pressure. Last week, attacks hit Saudi oil tankers that were using the Red Sea to leave the region. When there is less oil available for customers to buy, the price goes up and fuel prices go up too.

The rebound in oil prices this month came just as inflation had begun to slow more than economists had expected. Now, traders believe inflation pressures have risen enough that they are betting on a 36% chance that the Federal Reserve will raise its key interest rate at an upcoming meeting, according to data from CME Group.

Higher interest rates would help keep inflation under control, but they could also slow the economy by making it more expensive for Europeans and businesses to borrow.

While oil prices have regained some of their big July gains, much uncertainty still remains./ CNA