Oil Prices Plunge by 7% Amid Trump's Postponed Attack on Iran

Oil prices plummeted by 7% at settlement on August 3, marking their lowest level in three weeks. The drop came after US President Donald Trump postponed a new attack on Iran, aiming to reach a swift agreement that would end the war and reopen the Strait of Hormuz.

Brent crude futures took a hit, falling $6.35 or 7.0% to settle at $83.77 per barrel, while US West Texas Intermediate (WTI) crude declined $4.33 or 5.1% to settle at $80.34 per barrel. Brent's price posted its lowest closing level since July 13.

The development comes as the United States released data showing that crude oil inventories in the US Strategic Petroleum Reserve had fallen to their lowest level since 1983, following the approval of releasing 172 million barrels from the reserve.