Oil slips below $90 on ceasefire hopes

July 21, 2026 (MLN): Oil prices edged lower on Tuesday as investors balanced reports of mediation efforts aimed at securing a ceasefire between the United States and Iran against renewed military exchanges and fresh threats to regional energy supplies.

Currently, Brent crude futures is down by $2.24, or 2.68%, to $88.56 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $1.98, or 2.35%, to $82.16 per barrel by [9:43 am] PST.

Iran-backed Houthi forces in Yemen declared on Monday that they would impose a naval blockade on Saudi Arabia, potentially opening another front in the conflict involving the United States and Iran.

The move has heightened concerns over disruptions to oil exports and global trade routes.

Meanwhile, a senior Iranian official told Reuters that Tehran had received a proposal from mediators for a 10-day ceasefire.

The initiative is part of efforts to preserve an interim agreement signed on June 17, which was intended to lay the foundation for a broader deal to end the conflict that began on February 28 following U.S.-Israeli attacks on Iran.

The diplomatic efforts came after another night of U.S. strikes on Iranian cities and retaliatory attacks by Iran's Revolutionary Guards targeting U.S. military assets across the region. Later on Monday, U.S. Central Command said it had launched another round of strikes on Iran.

Separately, a preliminary Reuters poll released on Monday indicated that U.S. crude oil and gasoline inventories likely declined last week, while distillate stockpiles were expected to increase.

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