Oil Prices Plummet After Trump Calls Off Strike on Iran

Oil prices plummeted on August 3 after US President Donald Trump called off a planned large-scale strike on Iran and agreed to fresh talks. The move led to a decline of over 7% in Brent crude, which sank as low as $81.55 a barrel before recovering some ground.

The decision was made after West Asian allies, including Saudi Arabia, urged Trump to pursue a negotiated deal instead. Trump said he agreed to the pullback on condition that officials reach a deal quickly to reopen the Strait of Hormuz and told officials to move fast and get it done.

Iran's Foreign Minister Abbas Araghchi had announced on Sunday that talks between Iran and Oman on a new route through the Strait of Hormuz were nearing completion. However, his spokesman clarified that the talks did not address whether the strait itself would remain open or closed.