Oil Prices Slide as US-Iran Agrees to Resume Peace Talks Again
Crude oil prices declined in the global commodity market on Monday as US-Iran agreed to resume peace talks after a show of strength between the warring nations.
According to the latest data update, US West Texas Intermediate (WTI) dropped by 4% to $80 per barrel on Monday after surging over 20% in July 2026.
US President Donald Trump announced that peace talks with Iran will resume today after he cancelled a planned military strike against the Islamic Republic.
Racing towards pre-war levels, Brent price slipped by more than 4% to around $84 per barrel after surging by over 20% in July.
Trump said key Middle Eastern allies, including Saudi Arabia, urged him to suspend the attacks and prioritise negotiations, while reiterating his call for the swift reopening of the Strait of Hormuz.
Renewed conflict between the US and Iran, Houthi attacks in the Red Sea, and Saudi strikes on Iran-backed groups have heightened risks to key shipping routes.
Iran claimed it attacked two tankers transiting the Strait of Hormuz under US military escort, though Western maritime authorities have not confirmed the incident.
In July, oil prices rose by about 23% over renewed hostilities between the US and Iran, shattering the interim peace agreement, with supply disruptions extending from the Strait of Hormuz to the Red Sea.
Attacks near Russia’s Black Sea oil export infrastructure, including the Caspian Pipeline Consortium (CPC) terminal, have raised concerns about disruptions to Kazakhstan’s oil exports, an important source for European refiners.
Meanwhile, major OPEC+ producers approved another modest increase in production quotas, completing the planned restoration of output cuts introduced in 2023 and leaving room to boost supplies further once the Middle East conflict comes to an end.
Trading data indicates that UK natural gas prices dropped more than 4% to around 138 pence per therm on the first trading day of August, the lowest in over two weeks.
UK natural gas prices soared more than 38% in July as the renewed fighting heightened concerns over LNG supplies from the Persian Gulf and Europe’s ability to replenish gas inventories ahead of winter.
European gas facilities ended last month about 55% full, well below both the five-year average and the level recorded at the same time last year, leaving storage levels behind the pace needed to meet pre-winter targets before the heating season begins in November. Conoil Profit Rises Six Folds, Margin Expands
