TOKYO, Japan – Global crude oil prices declined on Monday, July 27, 2026, as a pause in military strikes between the United States and Iran increased prospects for a ceasefire and talks on reopening the Strait of Hormuz.
Okay News reports that Iranian Foreign Ministry spokesman Esmaeil Baqaei stated that negotiations with Oman focused on common principles and operational mechanisms for ensuring safe passage through the waterway while respecting sovereign rights.
The United States halted military strikes over the weekend following 13 days of attacks on targets in Iran, while the United States envoy to the United Nations stated that the United States president was “giving talks some space”. Iran subsequently stated that it would cease retaliatory attacks against regional neighbours. The pause followed renewed hostilities earlier in the month after Iran attacked vessels in Oman waters in the Strait of Hormuz, leading to additional attacks by Iran-backed Houthi rebels on Saudi Arabia vessels in the Bab al-Mandeb Strait.
Brent North Sea Crude dropped 6.4 per cent to $90.56 a barrel after falling below $90 earlier in the session, while West Texas Intermediate fell 6.5 per cent to $83.54 a barrel around 0715 GMT. On stock exchanges, the Nikkei 225 in Tokyo closed up 0.5 per cent at 64,931.19, the Hang Seng Index in Hong Kong rose 1.0 per cent to 25,222.27, and the Shanghai Composite gained 1.2 per cent to 3,858.25. The FTSE 100 in London increased 0.5 per cent to 10,791.16, while the Dow Jones Industrial Average in New York closed up 0.5 per cent at 51,947.25.
National Australia Bank analyst Sally Auld said, “It looks as if developments in the Middle East have moved in a positive direction over the weekend, adding some credibility to the notion that oil above $100 a barrel seems to induce de-escalatory behaviour from both sides,”. In corporate news, China chipmaker CXMT rose 530 per cent on its Shanghai stock exchange debut after raising $9.8 billion in an initial public offering. Allianz Global Investors analyst Jenny Zeng said, “While the (policy board) is likely to remain on hold in July, we continue to expect 50 basis points of tightening by year-end.”
Currency markets recorded the euro trading at $1.1410, the British pound at $1.3355, and the US dollar at 163.57 yen.
