Oil Prices Plummet After Trump Announces Iran Deal
The price of oil plummeted on August 3 after US President Donald Trump announced that he would not launch an immediate attack on Iran, instead opting for a quick agreement to end Tehran's nuclear ambitions and reopen the Strait of Hormuz.
Brent crude futures dropped $4.37 per barrel, or 5%, to $83.56, while U.S. West Texas Intermediate crude declined $4.63, or 5.5%, to $80 a barrel.
The sharp decline follows a recent rally, where oil prices surged more than 20% in July due to heightened tensions between the US and Iran.
Analysts estimate that every additional month of supply disruption could lift Brent prices by around $7 to $8 per barrel. If disruptions persist for three months, JPMorgan expects the monthly average Brent price to reach about $114 a barrel.