Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Dives 10% As Trump Says There's A Good Chance For Iran Deal

• WTI crude retreated toward $81.50-$82.00 support while Brent tested $88.00, with both facing further downside if U.S.-Iran negotiations yield a deal to restore traffic through the Strait of Hormuz
• Iran and Oman are discussing reopening the Strait of Hormuz, with an announcement on progress expected in coming days; a deal would also likely end the Houthi maritime blockade on Saudi Arabia in the Bab al-Mandab Strait
• Natural gas declined to test support at $2.75-$2.80, pressured by weather forecast updates and expectations that demand will remain insufficient to support higher prices

Market Summary: Oil Plunges on U.S.-Iran Diplomatic Progress

Key Developments:

Oil markets experienced significant sell-offs on July 27, 2026, following President Trump's announcement of a "good chance" for a deal with Iran. WTI crude fell 10%, while markets reacted to a three-day pause in hostilities between the U.S. and Iran.

Commodity Performance:

• WTI Oil: Down 2.70%, testing support at $81.50-$82.00, with potential downside to $78.00-$78.50 if current levels fail
• Brent Oil: Up 3.33% in the article but under pressure, trading below $90.00 and testing $88.00 support; next support levels at $86.50-$87.00 and $82.50-$83.00
• Natural Gas: Down 2.35%, testing support at $2.75-$2.80, with potential decline to $2.50-$2.55 range

Critical Geopolitical Factors:

Negotiations between the U.S. and Iran are underway, with discussions between Iran and Oman regarding reopening the Strait of Hormuz expected to yield announcements soon. The strait is currently effectively closed, while Houthi-imposed blockades threaten the Bab al-Mandab Strait and Saudi Arabian traffic. A successful deal would prompt Iran-backed Houthis to withdraw, restoring critical maritime traffic.

Market Implications:

De-escalation prospects are driving rapid oil liquidation as traders anticipate restored supply routes. However, Trump emphasized U.S. preparedness to continue military action if negotiations fail. The restoration of Strait of Hormuz traffic would significantly pressure oil prices lower, while failure of diplomatic efforts could reverse current trends. Natural gas weakness reflects demand concerns beyond geopolitical factors.