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Oil Slides as Pakistan-China Revive US-Iran Talks, China Cuts Imports

7/26/2026

42 8 Full Breakdown

Summary

Oil Slides

Oil fell after Pakistan-China moves to revive U.S.–Iran talks, with WTI $88.27 and Brent $95.73.
The Dow rose 350 points (+0.67%) to 52,063 while the S&P 500 gained 39 points (+0.52%) to 7,447.13.
Treasury yields, which had peaked above 4.7%—their highest since Jan. 15 2025—fell as crude retreated while analysts said the slide reinstated a geopolitical risk premium, dampening oil sentiment.
UBS projects Brent to average $85 per barrel by year-end.

Summary

China Cuts Imports

China cut baseline seaborne crude imports by 44 percent since February, matching Germany, France and the United Kingdom’s daily use.
Beijing holds about 1.3-1.4 billion barrels in strategic and commercial oil stockpiles, the world’s largest.
After capping gasoline, diesel and jet-fuel exports in early March, China limited shipments to Vietnam, the Philippines and Australia, using fuel as a geopolitical lever.

History

Historical Context

The 1973 Arab oil embargo, launched by OAPEC after the Yom Kippur War, slashed Middle-East exports to the West by 60-70% and drove U.S. gasoline prices to triple, while Saudi-led price hikes lifted a barrel from $5 to $11.65. Today Pakistan and China’s push to restart U.S.–Iran talks and China’s 44% cut in seaborne crude echo that same oil-as-leverage strategy.

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Oil Slides

Oil fell after Pakistan-China moves to revive U.S.–Iran talks, with WTI $88.27 and Brent $95.73.
The Dow rose 350 points (+0.67%) to 52,063 while the S&P 500 gained 39 points (+0.52%) to 7,447.13.
Treasury yields, which had peaked above 4.7%—their highest since Jan. 15 2025—fell as crude retreated while analysts said the slide reinstated a geopolitical risk premium, dampening oil sentiment.
UBS projects Brent to average $85 per barrel by year-end.

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