Trump Cancels Iran Strike, Oil Prices Plummet 5%
Oil prices plummeted by around 5% on August 3rd after US President Donald Trump cancelled a massive military strike against Iran and shifted course towards resuming dialogue.
The closing price for October Brent crude futures on the ICE Futures Exchange fell 4.7% from the previous trading session to $83.77 per barrel, while September West Texas Intermediate (WTI) crude futures dropped 5.1% to $80.34 per barrel on the New York Mercantile Exchange.
Experts note that uncertainty over oil prices remains unresolved, pointing out that the cycle of President Trump threatening a massive strike, withholding it under the pretext of dialogue, and Iran denying talks are taking place has repeatedly occurred since the armistice memorandum of understanding (MOU) signed by the US and Iran in mid-June was scrapped.
Ritterbusch and Associates assessed that 'today's sharp sell-off in crude futures appears to be another overreaction to President Trump's remarks.'