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Oil prices fall after US and Iran pause strikes

financeJul 27, 202690144

Brent crude futures fell 7.6% to about $89.43 a barrel and U.S. West Texas Intermediate dropped 6.7% to $83.37 after reports that Iran would suspend attacks so long as the United States also refrains from striking. Reuters cited a senior Iranian official saying Tehran will halt operations while the U.S. pause holds and that its stance remains "attack for attack." U.S. ambassador to the United Nations Mike Waltz said President Donald Trump chose to pause strikes to give diplomacy space. The U.S. bombing campaign was suspended after advisers warned the military was running out of viable targets and raised concerns about depleting weapons stockpiles, Reuters reported. HSBC U.S. rates strategist Dhiraj Narula said higher oil had pushed expectations that the Federal Reserve might keep policy tighter for longer, but that stronger Fed messaging has kept longer-term inflation expectations relatively contained. The pause in hostilities eased near-term supply fears and triggered the immediate drop in crude futures and related market moves.

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