Oil Prices Plummet Over 6% as US and Iran Halt Military Actions

International oil prices fell by more than 6% on July 27, 2026, following the cessation of military actions between the United States and Iran after two weeks of exchanges. This pause has raised hopes for a diplomatic solution, which could facilitate the resumption of shipping through the Strait of Hormuz, according to Reuters. Brent crude, the global benchmark, dropped $6.20, or 6.4%, to $90.58 a barrel by 1:20 PM Cambodia time, after briefly falling below $90 earlier in the day. U.S. West Texas Intermediate (WTI) crude was at $83.51 a barrel, down $5.80, or 6.5%. Both contracts are trading at their lowest levels in nearly a week, following three weeks of gains. Brent crude had reached $100 a barrel due to a conflict that disrupted oil shipments through the Strait of Hormuz and spread to the Red Sea, hindering exports from Saudi Arabia, a top global exporter, via the Bab el-Mandeb strait to Asia. U.S. Ambassador to the United Nations, Mike Waltz, told Fox News Sunday and other U.S. media that President Donald Trump decided to halt attacks on Iran to allow more time for diplomatic negotiations. Despite the pause in hostilities, shipping data from Kpler showed fewer than 10 vessels passing through the Strait of Hormuz daily over the past weekend. Furthermore, ship traffic through the Bab el-Mandeb strait also decreased on Sunday after Iran-backed Houthi rebels in Yemen attacked Saudi oil facilities along the Red Sea coast, although a third Chinese supertanker departed via the Bab el-Mandeb strait. Source: Koh Santep Khmer