Oil prices slip as mediators propose US-Iran ceasefire

Oil prices fell on Tuesday, July 21, 2026, with markets weighing reports of mediation efforts between the United States and Iran against an exchange of fresh attacks between the two countries.

Brent crude futures fell 96 cents, or 1.1%, to $88.26 per barrel by 0630 GMT, while U.S. West Texas Intermediate crude was down 73 cents, or 0.9%, to $82.50 per barrel.

The more active contract for September delivery slipped 57 cents, or 0.7%, to $81.91 a barrel.

“There’s some hope of de-escalation between the U.S. and Iran. Reports ⁠are that mediators are proposing a 10-day ceasefire, which could put the Memorandum of Understanding (MoU) back on track,” ING analysts said in a statement.

The ING analysts, however, said the proposal won’t be easy as major differences remain between Washington and Tehran, while United States President Donald Trump has warned of retaliation after several U.S. soldiers were killed.

A senior Iranian official told Reuters Tehran had received a proposal from mediators for a 10-day ceasefire in efforts to salvage the deal signed on June 17, intended to pave the way for a lasting agreement to end the war that began on February 28 with U.S.-Israeli attacks on Iran.

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The diplomatic push followed another night of U.S. strikes on Iranian cities ⁠and attacks by Iran’s Revolutionary Guards on U.S. military assets across the region.

Later on Monday, U.S. Central Command said it had begun another round of strikes on Iran.

The United Kingdom Maritime Trade Operations agency said on Tuesday that a tanker in the Strait of Hormuz reported being struck by an unknown projectile, forcing its crew to abandon ship and board a lifeboat.

Vessel crossings via ⁠the strait also dropped further amid growing caution following fresh attacks between the U.S. and Iran.