Trump's Call-Off Sends Oil Prices into Free Fall
Oil prices plummeted on August 3 as US President Donald Trump announced he had called off a planned strike on Iran and agreed to fresh talks. Brent crude sank as much as 7.3% to $81.55 a barrel before recovering some ground, while West Texas Intermediate dropped 4.6% to $80.76.
The decision came after Trump's West Asian allies urged him to pursue a negotiated deal instead of a large-scale strike. 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.
A modest OPEC+ output hike added further pressure on prices, even as risks to shipping through the Strait of Hormuz remained high. Oil pared some of its early losses after the UK Maritime Trade Operations agency reported that a tanker off Oman had detected a nearby explosion on Sunday.