Oil prices ease as mediators propose US-Iran ceasefire

Brent crude futures fall 96 cents, or 1.1%, to $88.26 per barrel Reuters July 21, 2026 2 min read The sun sets behind oil pumps outside Vaudoy-en-Brie, near Paris, France, March 18, 2026—REUTERS Oil prices fell on Tuesday, with markets ​weighing reports of mediation efforts between the US and Iran against an exchange of ‌fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen's Houthis. Brent crude futures fell 96 cents, or 1.1%, to $88.26 per barrel. US West Texas Intermediate crude was down 73 cents, or 0.9%, ​to $82.50 per barrel, while the more active contract for September delivery slipped 57 cents, or ​0.7%, to $81.91 a barrel. "There's some hope of de-escalation between the US and Iran. Reports ⁠are that mediators are proposing a 10-day ceasefire, which could put the Memorandum of Understanding (MoU) back on ​track," ING analysts said in a note, referring to the June interim deal. However, this won't be easy as ​major differences remain between Washington and Tehran, while Trump has warned of retaliation after several US soldiers were killed, ING added. A senior Iranian official told Reuters Tehran had received a proposal from mediators for a 10-day ceasefire in efforts to salvage the deal ​signed on June 17, intended to pave the way for a lasting agreement to end the war ​that began on February 28 with US-Israeli attacks on Iran. The diplomatic push followed another night of US strikes on Iranian ‌cities ⁠and attacks by Iran's Revolutionary Guards on US military assets across the region. Later on Monday, US Central Command said it had begun another round of strikes on Iran. Read: Three-pronged strategy devised for seamless oil supply A tanker in the Strait of Hormuz reported being struck by an unknown projectile, forcing its crew to abandon ship and board a lifeboat, the United Kingdom Maritime ​Trade Operations agency said on ​Tuesday. Vessel crossings via ⁠the strait also dropped further amid growing caution following fresh attacks between the US and Iran. Additionally, Yemen's Iran-aligned Houthis said on Monday they would impose a naval blockade ​on Saudi Arabia, opening a potential new front against the US in its ​war on Iran ⁠and raising the threat to global energy supplies and trade beyond the Gulf. "The threats of a naval blockade on Saudi Arabia by the Houthis are significant because they raise the risk of disruption to another major oil ⁠exporter," ​said Tim Waterer, chief market analyst at KCM Trade. Meanwhile, US crude ​oil stockpiles were expected to have fallen last week alongside gasoline, while distillate stocks likely rose, a preliminary Reuters poll showed on ​Monday.