Trump Delays Iran Attack, Oil Prices Plummet 5%

Oil prices plummeted on August 3 as US President Donald Trump announced he would not launch an attack on Iran, instead opting to pursue a quick agreement to end Tehran's nuclear ambitions and reopen the Strait of Hormuz.

The price of Brent crude futures fell $4.37, or 5%, to $83.56 a barrel, while U.S. West Texas Intermediate crude declined $4.63, or 5.5%, to $80 a barrel.

Analysts are divided on the market's trajectory, with some predicting prices could rise to $114 a barrel if disruptions continue for three months. Goldman Sachs expects Brent to average $80 a barrel in the fourth quarter and $75 a barrel next year, but notes the risks to its forecasts remain 'tilted to the upside'.