Brent crude fell 5%. Reuters reported on an attempt to resume negotiations between the U.S. and Iran

Following a sharp rise the previous day, oil prices fell during trading on July 24: futures for the benchmark Brent crude fell 4.8%, dropping below $96 per barrel. Futures contracts for North American WTI lost about 4.3% and traded at $88 per barrel. The decline accelerated after Reuters reported that China had initiated Pakistan’s attempt to resume negotiations between the U.S. and Iran.

According to three of the agency's sources, Beijing offered to help Islamabad launch a new diplomatic process, after which Pakistan began discussing this possibility with Iran.

“China is unhappy because Iran’s attacks on other Gulf countries and the closure of the Strait of Hormuz affect its interests,” an unnamed Pakistani government official told Reuters. And disruptions to shipping in the Red Sea caused by Houthi attacks could jeopardize another key trade route on which Beijing depends, the agency explains.

A statement from the Chinese Foreign Ministry, as quoted by Reuters, says that it “supports the mediation efforts of Pakistan and other parties” and will continue to “play an active role in restoring peace and stability to the region as soon as possible.”

Following the Reuters report, U.S. stock indices rose: the S&P 500 was up 0.7% at the time of this writing, the Dow Jones Industrial Average jumped 0.8%, and the Nasdaq Composite, which had started the trading session in the red, moved into positive territory, up 0.2%.

This article was AI-translated and verified by a human editor