Oil Prices Plummet as Trump Cancels Iran Strike and OPEC+ Raises Output

Oil prices dropped on Monday in Asian trading after US President Donald Trump announced that he had cancelled a planned military strike on Iran. The decline reflected reduced geopolitical risks for energy markets, while investors also tracked a fresh output increase from OPEC+. West Texas Intermediate crude for September fell by 4.95% to $80.48 per barrel, with Brent crude for October losing 4.59% to $83.89 a barrel.

The pullback followed President Trump's disclosure that he had reversed his decision to launch an attack on Iran, citing requests made by Tehran and Middle Eastern nations. Trump stated that dialogue with Iran was scheduled to begin on Monday, but he did not specify any timeline for reaching a resolution.

OPEC+ announced on Sunday that it would increase its collective production quota by roughly 188,000 barrels per day beginning in September. This adjustment marks the final removal of previous voluntary output curbs, completing the reversal of a 1.65 million barrels per day cut initiated in 2023.