Trump's Iran Deal Hopes Send Oil Prices Tumbling
Oil prices plummeted by $4 a barrel on Monday (August 3, 2026) after US President Donald Trump put off a potential attack on Iran in an effort to reach a quick deal that would halt Tehran's nuclear ambitions and reopen the Strait of Hormuz.
Brent crude futures dropped 4.64% to $83.85 by 2352 GMT while U.S. West Texas Intermediate crude was at $80.66 a barrel, down 4.74%, according to shipping data on Monday.
The recent tension between the US and Iran led to a surge in oil prices last month, with contracts jumping more than 20%. However, Trump's announcement on Saturday (August 1, 2026) that Iran had asked for time to complete a deal may indicate a de-escalation of tensions.
IG market analyst Tony Sycamore noted that the bigger focus is whether this week turns into a 'rinse and repeat' of last week's events, with hopes of a deal collapsing as Iran digs in its heels.