Jul. 28 at 2:29 AM
Oil prices extended their sharp decline in Asian trading after plunging more than 9% in the previous session, as hopes for renewed U.S.-Iran negotiations eased concerns about major disruptions to Middle East crude supplies. Brent crude fell to around
$87.85 per barrel and WTI dropped to about
$81.96, reversing much of last week’s rally that briefly pushed Brent above
$100.
Market sentiment improved after President Donald Trump said Washington and Tehran were engaged in talks aimed at ending the conflict, while Iran paused retaliatory actions and reports suggested China was helping revive diplomatic efforts. The prospect of de-escalation led traders to unwind geopolitical risk premiums that had driven oil prices higher.
Despite the selloff, analysts cautioned that the situation remains fragile. Shipping traffic through the Strait of Hormuz and Bab el-Mandeb remains below normal levels.
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