After more than a week of rallies, oil prices have fallen following the pause in attacks between the United States and Iran over the weekend.
The attacks that have lasted for nearly two weeks had led to the collapse of an earlier 60-day ceasefire.
The suspension of the latest hostilities has, according to analysts, raised hopes of a diplomatic solution that would de-escalate the conflict and allow shipping to resume in the Strait of Hormuz.
According to market data published by Oilprice.com, Brent Crude, the international benchmark, dropped by $6.38 to $90.40 per barrel, while West Texas Intermediate (WTI) fell by $5.30 to $84 per barrel on Monday, July 27, 2026. Murban Crude also declined by $12.20 to trade at $84.85 per barrel on the same day.
Oil prices had hit $100 per barrel after the conflict escalated, hindering shipments through the Strait of Hormuz and spilling over to the Red Sea, blocking exports from the World’s top oil producer, Saudi Arabia.
The U.S. ambassador to the United Nations, Mike Waltz, had reportedly stated on Sunday that President Donald Trump decided to pause U.S. attacks to allow room for diplomacy.
On its part, Iran reportedly said its stance remains “attack for attack,” stressing that if U.S. attacks stop, Iran will halt operations too.
Meanwhile, Yemen’s Iran-aligned Houthis on Sunday attacked Saudi oil installations along the Red Sea coast, leading to a decline in ship traffic through the Bab el-Mandeb strait.
Despite the pause, Saudi Arabia said it intercepted drones launched by Iran-backed militias in Iraq, and Iran’s foreign ministry spokesperson maintained the Strait of Hormuz was “closed,” with Jordan reporting it downed two drones early Monday.
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The war that has lasted for five months has continued to roil the global energy market with the supply chain disruption caused by the closure of the Strait of Hormuz, a sea route where about 20 per cent of the world’s oil and gas vessels pass daily. The conflict started in late February, when the U.S. and Israel launched airstrikes on Iran, killing the Islamic country’s supreme leader, Ayatollah, and other Iranian top officials.
The result has been high oil and gas prices as nations that depend on imports continue to record low inventories.
Pinnacle Daily reports that for Nigeria, Africa’s largest oil producer, the outcome is nuanced. While the country could gain from higher oil prices through exports, the consumers grapple with a hike in prices of refined products such as petrol, diesel and aviation fuel.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X