Oil prices declined on July 28 as the United States and Iran maintained a pause in military attacks. CNN reported that President Donald Trump said talks with Iran were going well, while Iranian officials denied that direct negotiations with Washington were taking place.
Brent crude fell by more than $1 to about $86.89 per barrel. U.S. West Texas Intermediate crude dropped to roughly $81.16, placing both benchmarks at their lowest levels since July 20. Prices had already fallen about 8 percent during the previous session after the United States suspended airstrikes.
The pause followed a 13-day U.S. bombing campaign against Iranian targets. Both governments have warned that military operations could restart if diplomatic efforts fail.
Shipping through the Strait of Hormuz remains below normal levels. The waterway is a major route for oil and liquefied natural gas exports from the Persian Gulf. Iran and Oman are discussing arrangements for safer vessel passage, including how shipping lanes would operate.
Traffic has also been disrupted near the Red Sea following attacks and threats involving Yemen’s Houthi movement. Reduced tanker movements, higher insurance costs and longer shipping routes continue to affect energy deliveries.