Brent falls below $84 as US-Iran diplomacy lifts supply hopes

New Delhi: Brentcrude, the global oil benchmark, witnessed sharp swings over the past week as markets reacted to developments in the US-Iran conflict and their implications for global oil supplies. Brent crude fell sharply on July 27, with September futures settling at $88.36 a barrel, down 8.7 per cent, after the US suspended its campaign of air strikes against Iran, raising hopes of a diplomatic resolution. Prices extended their decline on July 28, with Brent futures trading around $87.86, as investors assessed the possibility of renewed US-Iran talks. However, concerns over subdued oil flows through the Strait of Hormuz continued to provide some support.

The market subsequently rebounded as fighting resumed, with Brent moving back above $90 a barrel amid renewed fears of supply disruptions. The sharp recovery underscored the market’s sensitivity to geopolitical developments.