Trump's Iran U-Turn Crashes Oil Prices
Crude oil prices plummeted on August 3 after President Trump announced renewed diplomatic talks with Iran and cancelled anticipated military strikes against the country.
The price of Brent crude futures fell as much as 7.3% to around $81.55 per barrel, while WTI benchmarks dropped more than 6%, in a single session that erased a significant chunk of their July rally.
The rally had seen crude surge over 20% in July alone, with prices briefly touching $100 to $110 per barrel on fears of a supply shock near the Strait of Hormuz.
OPEC+ also contributed to the price drop by approving an additional production quota increase of 188,000 barrels per day for September. This move signals that the cartel is no longer interested in defending triple-digit prices.