At the start of the trading week, Brent crude oil prices fell 5% to 91,8 USD per barrel. Earlier, prices dipped below the 90 USD mark. US WTI crude dropped 5,2% to 84,6 USD. Both reached their lowest levels in nearly one week.

The market downturn followed the cessation of mutual attacks between the US and Iran over the weekend, after two consecutive weeks of hostilities. Iranian military spokesperson Mohammad Akraminia stated on 26/7 that US attacks had completely ended in the past two days. He added, "Since our strategy is primarily one of proportionate retaliation, Iran's retaliatory strikes have also been suspended."

This development sparked hopes that tensions would quickly de-escalate, allowing vessels to resume passage through the Strait of Hormuz, a vital waterway for global oil and natural gas.

Last week, Brent prices briefly surpassed 100 USD as the conflict rapidly escalated, not only tightening traffic in the Strait of Hormuz but also affecting the Red Sea, a key export route for Saudi Arabia to Asia.

Data firm Kpler reported that despite the halt in attacks, fewer than 10 cargo ships traversed Hormuz daily last weekend. Traffic through the Bab el-Mandeb Strait also significantly decreased following attacks on oil tankers in the Red Sea by Houthi forces.

Brent oil price movements over the past one year. Chart: Trading Economics

Global gold prices also rebounded as Middle East tensions eased. This morning, gold gained 50 USD per ounce, reaching 4.100 USD.

Last week, the precious metal's price saw significant fluctuations due to ongoing conflict and US economic data. After dipping below 4.000 USD, gold briefly surged to 4.165 USD per ounce, driven by bottom-buying and cooling US bond yields. However, gains were limited by positive US employment data, a stronger USD, and persistent inflation concerns.

This week, investors will monitor the policy meeting of the US Federal Reserve (Fed). The agency is still expected to maintain its reference interest rate at 3,5-3,75%.

Ha Thu (according to Reuters)