Oil prices fall as US and Iran pause strikes to ease Hormuz supply fears

Global oil benchmarks fell on Tuesday, 28 July, as market volatility eased following a tactical pause in military strikes between the United States and Iran. The reduction in immediate geopolitical friction has alleviated fears of a supply disruption through the Strait of Hormuz, a critical chokepoint for global energy shipments. Market reaction to lower regional tension Brent crude futures dropped 2.4% to trade at $82.15 a barrel, while West Texas Intermediate (WTI) fell by 2.6% to $77.80. The price correction follows a period of heightened risk premiums where traders priced in potential retaliatory actions that could have targeted energy infrastructure or shipping lanes in the Gulf. The current price dip reflects a shift in market sentiment toward stabilizing supply chains. Shipping data indicates that tankers continue to move through the Strait of Hormuz without new reported interference. This maritime corridor is responsible for the passage of approximately 21 million barrels of oil per day, representing roughly 21% of global petroleum liquid consumption. The pause in hostilities provides temporary relief to global refiners and logistics firms that had been bracing for spikes in insurance premiums and fuel costs. Supply outlook and global impact The immediate trigger for this price movement is the official confirmation from defense sources that both Washington and Tehran have opted for a de-escalatory window to assess diplomatic channels. This decision has directly…