Trump's Pause Sparks $4 Oil Price Drop as Hormuz Traffic Remains Low

Oil prices plummeted on August 3 after US President Donald Trump paused planned strikes against Iran, sparking a 5% drop in WTI futures to $80.34 and a 4.7% slide in Brent to $83.77.

The sell-off was largely driven by the removal of part of the premium tied to a deeper disruption of the Strait of Hormuz, although Iran denied direct US talks and vessel traffic remained far below normal.

With only six vessels transiting the strait on Monday, down from seven on Sunday, traders are waiting for safer shipping to confirm the market's lower risk assessment.