Oil prices extend losses as hopes rise for US-Iran diplomatic breakthrough

Oil prices fell by more than $1 per barrel on July 28, extending losses as hopes for a diplomatic resolution between the United States and Iran eased concerns over disruptions to global energy supplies.

Brent crude futures dropped $1.47, or 1.66%, to $86.89 per barrel by 0326 GMT, their lowest level since July 20. U.S. West Texas Intermediate (WTI) crude fell $1.45, or 1.76%, to $81.16 per barrel, also its lowest level since July 20, Reuters reports.

Both benchmarks had already declined by around 8% in the previous session after the United States unexpectedly suspended its campaign of air strikes against Iran over the weekend.

U.S. President Donald Trump said on July 27 that Washington was holding "good talks" with Iran and that there was a possibility of reaching a resolution. However, he warned that U.S. military strikes would resume if negotiations failed, while Iranian officials made similar statements about potential retaliation.

Oil prices also came under pressure after the Caspian Pipeline Consortium resumed crude loadings at its Black Sea export terminal on Russia's coast. The terminal had been offline for a week following Ukrainian drone attacks, with the resumption expected to ease supply concerns.

By Sabina Mammadli