Crude Oil Prices Drop Sharply on July 28, 2026
Brent crude recorded its steepest decline in more than three months. The international price now stands near $88.36 per barrel.
On Monday, prices fell 8.7 percent. This drop pushed Brent crude down from a recent high of $102 per barrel. Meanwhile, U.S. oil, known as WTI crude, also declined 7.5 percent and settled at $82.61 per barrel.
Geopolitical tensions in West Asia eased and triggered the decline. U.S. President Donald Trump decided to pause an attack on Iran. He chose to give diplomacy another chance instead. As a result, military strikes between the United States and Iran stopped for the past two days.
Negotiations between the two countries are now underway. Oman is acting as the mediator. These talks raised hopes that oil supplies through the Strait of Hormuz will return to normal. In addition, crude oil exports resumed from a terminal on Russia’s Black Sea coast. A Ukrainian drone attack had disrupted that route earlier.
China also played a role in calming the market. Reports indicate that China is urging Pakistan to help restart peace talks between the United States and Iran. According to a Reuters report, China supports these efforts. A Pakistani official told Reuters that China is concerned because Iran’s actions and the closure of the Strait of Hormuz are harming Chinese interests.
The sharp drop benefits India as well. Indian oil marketing companies such as IOCL, BPCL, and HPCL now face a lower import bill. Consequently, efforts to reduce petrol and diesel prices in the country have gained fresh momentum.