Brent crude futures fell 96 cents, or 1.06%, to $89.78 a barrel. U.S. West Texas Intermediate crude dropped 64 cents, or 0.76%, to $83.82 a barrel.
Oil prices surged sharply on July 29 after U.S. President Donald Trump threatened a "very strong" strike against Iran following an Iranian missile attack Tuesday on a U.S. base in Jordan.
Also on July 29, the United States and Saudi Arabia struck Iran-backed militias in Iraq.
It marked the first time Saudi Arabia had publicly joined U.S. airstrikes in response to drone attacks launched from Iraq against Saudi oil facilities.
According to U.S. Central Command, the United States also carried out two hours of strikes on Iran.
Analysts said the oil market has followed a familiar pattern: geopolitical headlines trigger sharp price spikes, but those gains are often short-lived because actual oil supply flows and parallel diplomatic efforts typically determine how long prices remain elevated.
Crude oil shipments have continued from the key Persian Gulf region despite the near-total closure of the Strait of Hormuz.
As reported, on July 22, U.S. President Donald Trump said that every time Iran attacks a vessel in the Strait of Hormuz, the United States would destroy a bridge or power plant.
Overnight on July 23, U.S. forces carried out a 12th consecutive night of strikes on Iran.
On July 23, 2026, oil prices climbed to their highest level in more than six weeks as tensions in the Red Sea escalated and the United States launched another round of strikes on Iran.
On July 28, talks between the United States and Iran influenced oil prices.