Oil prices have suffered a major collapse in international markets. Driven by growing expectations of a diplomatic resolution between the United States and Iran, crude oil prices dropped by more than 10 percent in a single day as investor anxiety over the Middle East situation eased amid positive progress in bilateral talks.

According to Anadolu Agency, international crude oil prices fell by over 10 percent on Monday (July 27).

As of 12:45 AM Bangladesh time, the international benchmark Brent crude was trading at approximately $88.6 per barrel.

This marked a 10.4 percent decline from the previous session's price of $91.68.

Concurrently, the U.S. benchmark West Texas Intermediate (WTI) crude dropped by 8 percent, falling to $82.35 per barrel.

Prior to this, Brent crude prices had temporarily surged to $100 per barrel amid concerns that shipping disruptions through the Strait of Hormuz and the Bab el-Mandeb Strait would cut off oil exports from the Middle East.

However, oil prices began to decline after U.S. President Donald Trump suspended military strikes against Iran last Friday following nearly two weeks of conflict.

On Monday, Trump stated that "good discussions" are underway between Washington and Tehran and that there is a possibility of reaching a settlement.

However, he also warned that strikes could resume if negotiations fail.

Meanwhile, Iran announced that it has also suspended its retaliatory military operations and engaged in talks with Oman regarding navigation in the Strait of Hormuz.

The supply outlook further improved as crude oil transportation resumed from the Caspian Pipeline Consortium terminal on Russia's Black Sea coast, which serves as a major export route for Kazakhstan's oil.

Nevertheless, a degree of caution remains in the market as the Houthi group in Yemen claimed to have attacked facilities belonging to Saudi Aramco in Jizan and Yanbu.

However, neither the Saudi government nor Saudi Aramco has yet confirmed the truth of these claims.