Oil price volatility: Brent crude falls below $90

What happened: Brent crude oil prices, which peaked at $119.50 per barrel in March, have fallen to $80, breaching this level for the first time since then on Tuesday, July 21. This decline was driven by optimism surrounding a potential U.S.-Iran peace deal, which could reopen the Strait of Hormuz, a crucial oil shipping route. Energy Transfer and Enbridge, operators of "toll road" pipelines, and Chevron, a diversified energy company, have been cited as potential beneficiaries of this price drop.

Market impact: The oil price decline affects energy producers and consumers alike. Energy companies with steady cash flows, like Energy Transfer and Enbridge, may see increased demand for their services as producers seek to reduce costs. Meanwhile, consumers, including airlines and manufacturers, benefit from lower input costs. However, this also raises concerns about global oil inventories, which have been depleting, potentially leading to supply shortages and price increases in the future.

What to watch next: Investors should closely monitor the progress of U.S.-Iran peace talks, with a breakthrough potentially leading to further oil price declines. Additionally, the release of U.S. inventory data by the Energy Information Administration on July 29 will provide insights into the current supply-demand dynamics. Lastly, the earnings reports of major oil companies, such as Chevron in late August, may offer guidance on how these companies are navigating the volatile oil price environment.