Oil prices slip to one-week low as Trump confirms fresh US-Iran peace talks

Oil prices fell for a second straight session on Tuesday, July 28, 2026, hovering around one-week lows after United States President Donald Trump said Washington was making progress in talks with Iran, raising hopes of easing tensions that have rattled global energy markets.

Brent crude futures dropped 50 cents, or 0.57 per cent, to $87.86 per barrel by 0610 GMT, while U.S. West Texas Intermediate (WTI) crude declined 37 cents, or 0.45 per cent, to $82.24 per barrel.

The decline followed an 8 per cent plunge in both benchmarks during the previous trading session after the United States suspended its airstrike campaign against Iran over the weekend, easing fears of a wider conflict in the Middle East.

Speaking on Monday, Trump said the United States was having “good talks” with Iran and expressed optimism that the two sides could reach a resolution.

Trump, however, warned that military action could resume if negotiations collapsed, while Iran also maintained it would retaliate if attacked.

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“For now, the relief that an off-ramp has been found has taken ​the heat out of prices and eased concerns around Houthi attacks on Saudi infrastructure. However, the situation remains highly fluid,” IG analyst Tony Sycamore said in a client note.

Concerns over maritime security also persisted after Yemen’s foreign minister-designate, Afrah al-Zouba, accused the Iran-backed Houthi movement of seeking to extend its influence over the Bab el-Mandeb Strait, similar to Iran’s control over the Strait of Hormuz.

An analyst at Marex, Edward Meir, told Reuters that while it remained unclear whether the Houthis possessed the military capability to impose a full blockade, shipping traffic through both the Red Sea and the Strait of Hormuz had already slowed significantly.

Meir added that weakening oil demand, particularly across Asia, was helping to prevent prices from rising further despite ongoing geopolitical risks.