2026.07.2810:25:52UTC+00Crude Falls for 3rd Session

Crude oil fell to around $81 per barrel on Tuesday, hitting its lowest level in more than a week, as renewed optimism over a possible diplomatic breakthrough between the US and Iran eased fears of supply disruptions. President Donald Trump said Washington was engaged in “good talks” with Tehran and that there was a “good chance” of reaching a resolution, after he halted planned military strikes to allow more time for negotiations. He warned, however, that US military action would resume if diplomacy failed, while Iran cautioned it would retaliate if talks collapsed. Meanwhile, Oman has reportedly proposed a joint regional framework to oversee shipping through the Strait of Hormuz, including a voluntary fee system. Despite the more constructive diplomatic tone, geopolitical risks remain high. Saudi Arabia said it intercepted drones launched from Iraq that were aimed at petroleum infrastructure, blaming Iran-backed groups, while Yemen’s Houthi rebels claimed responsibility for an attack on Saudi Arabia’s East–West oil pipeline.