"Although the situation in the Middle East has calmed, it has not been resolved," said XTB research director Kathleen Brooks.
An exterior view shows the New York Stock Exchange (NYSE) on Jul 24, 2026 in New York. (Photo: AFP/Angela Weiss)
28 Jul 2026 05:26AM
NEW YORK: Oil prices tumbled Monday (Jul 27) as the United States and Iran paused tit-for-tat strikes, helping most stock markets climb at the start of a week packed with corporate earnings and central bank decisions. International benchmark Brent fell more than eight per cent to US$88.36 per barrel as the US and Iran held their fire, handing Gulf shipping and the oil industry a respite.Donald Trump was "giving talks some space", said the US president's UN envoy.The US and Iran resumed hostilities earlier this month, breaking a fragile truce, after the Islamic republic attacked ships passing through Omani waters in the Strait of Hormuz, sparking a pattern of escalation.Crude prices soared on the flare-up, with Brent breaking back above US$100 a barrel last week for the first time since May. "Although the situation in the Middle East has calmed, it has not been resolved, and it could make a decline below US$85 per barrel tricky at this stage," said Kathleen Brooks, research director at XTB trading group. David Morrison at Trade Nation said that "investors are hoping that this could be a precursor to a resumption in peace talks."The calmer situation eased worries about a resurgence in inflation and a fresh round of interest rate hikes, helping lift equity markets Monday.
