Crude oil futures trade lower on possible ceasefire reports

Crude oil futures traded lower on Tuesday morning amid reports that mediators have put forward a 10-day ceasefire proposal between the US and Iran to ease tensions in West Asia.

At 9.31 am on Tuesday, September Brent oil futures were at $88.48, down by 0.83 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $82.11, down by 0.45 per cent. August crude oil futures were trading at ₹7942 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹7949, down by 0.09 per cent, and September futures were trading at ₹7834 against the previous close of ₹7839, down by 0.06 per cent.

In their Commodities Feed for Tuesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said oil prices closed higher on Monday but retreated from session peaks, leaving Brent back below $90 a barrel by the close. Prices are trending lower in early morning trading on Tuesday.

“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 back on track. This won’t be an easy task. Large divisions remain between the US and Iran,” they said.

Additionally, the Houthis in Yemen announced a naval blockade on Saudi Arabia, putting oil supply at increased risk. Since disruptions hit the Persian Gulf, the Saudis have increased exports from Yanbu in the Red Sea, shipping around 4.6 million barrels a day of crude in June, up from around 1.3 million barrels a day at the start of the year. An effective blockade would prevent oil flows to Asia moving south via the Bab el-Mandeb Strait. Instead, vessels would have to take the much longer route through the Suez Canal and go around Africa.

“It’s yet to be seen how effective any blockade will be. But, clearly, this development will increase insurance costs. If shippers decide to avoid the Bab el-Mandeb Strait, voyage times will be longer and more expensive. Looking at oil price action this morning, the market is not convinced that this blockade will be successful,” they said.

Meanwhile, a statement by US Central Command said it completed another round of strikes against Iran at 9 pm ET on July 20.

US forces struck Iranian military command centres, maritime capabilities, missile and drone launch sites, and air defence systems to degrade Iran’s ability to continue attacking commercial vessels flowing through the Strait of Hormuz.

US Central Command said commercial vessel transits through the vital international maritime corridor continue. Since early May, Central Command forces have helped facilitate the transit of approximately 900 commercial vessels and 450 million barrels of crude oil, it said.

In a post on Truth Social, US President Donald Trump said: “Every time Iran kills an American Soldier, they will pay for that killing many times over! This directive has been passed on to Secretary of War, Pete Hegseth, Chairman of the Joint Chiefs of Staff, Daniel Caine, and every Leader in the Military.”

Published on July 21, 2026