Oil slides over 4% after Iran indicates pause in attacks

July 27, 2026 (MLN): Oil prices declined on Monday after Iran reportedly signaled it would suspend military operations if the United States maintains its pause in strikes, reducing concerns over potential disruptions to global energy supplies following nearly two weeks of heightened conflict.

Currently, Brent crude futures is down, 4.16%, at $92.75 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $4.10, or 4.59%, to $85.21 per barrel by [09:14 am] PST.

According to Reuters, citing a senior Iranian official, Tehran has conveyed that it will refrain from launching attacks as long as Washington also avoids military action.

The official said Iran's position remains based on the principle of "attack for attack," adding that hostilities from Iran would cease if U.S. strikes also stop.

The development comes after the United States reportedly halted its bombing campaign. The decision followed concerns raised by President Donald Trump's advisers over a shrinking list of viable military targets and the potential strain on U.S. weapons inventories.

Meanwhile, U.S. Ambassador to the United Nations Mike Waltz said in an interview with Fox News on Sunday that President Trump had paused the military campaign to provide an opportunity for diplomatic negotiations, as reported by CNBC.

The easing geopolitical tensions weighed on crude prices by lowering fears of supply disruptions in the Middle East, a region that accounts for a significant share of global oil production and exports.

The recent rise in oil prices has strengthened market expectations that the Federal Reserve may keep interest rates elevated for a longer period.

However, longer-term inflation expectations have remained broadly stable, suggesting investors remain confident in the Fed's ability to contain inflation despite the recent volatility in energy prices.

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