Oil Extends Losses Despite Heightened Red Sea Risks -- Market Talk

0658 GMT - Oil prices extend losses as a lull in U.S.-Iran hostilities spurred diplomatic efforts, with Iran and Oman seeking an agreement to reopen the Strait of Hormuz. The front-month Brent crude contract slides 2.3% to $86.31 a barrel after settling 8.7% lower in the previous session, while WTI falls 2% to $80.93 a barrel. Prices were also weighed down by reports that the Caspian Pipeline Consortium terminal resumed pipeline loading operations following a week-long suspension. Despite the selloff, supply risks remain elevated. Saudi Arabia said it intercepted drones launched by Iran-backed militias in Iraq targeting oil facilities. Meanwhile, Persian Gulf oil flows have dropped to 41% of prewar levels, while Red Sea shipments fell by more than 3 million barrels a day over the past week as Saudi Arabia rerouted some exports via the Suez Canal and Russia sharply reduced Red Sea shipments, according to Goldman Sachs. (giulia.petroni@wsj.com)

(END) Dow Jones Newswires

July 28, 2026 02:58 ET (06:58 GMT)