Trump's Iran Decision Triggers Sharp Fall in US Stock Futures and Oil Prices

US stock futures rose sharply on August 3 after President Donald Trump cancelled military strikes against Iran, easing tensions and leading to a decline in crude oil prices. The Dow Jones Industrial Average futures increased by 413 points, or 0.8%, while S&P 500 and Nasdaq-100 futures also gained.

The move triggered a sharp fall in crude oil prices, with Brent crude falling more than 7% to an intraday low of $81.55 a barrel, and US West Texas Intermediate (WTI) crude dropping 7% to $78.95 per barrel. Oil prices have remained highly volatile since the US and Israel launched attacks on Iran in late February.

Investors remain cautious amid concerns about inflation and interest rates, with the Federal Reserve's latest policy signals indicating a commitment to restoring price stability. The central bank kept its benchmark interest rate unchanged at 3.50%-3.75% for a fifth consecutive meeting last week, but three Fed officials dissented, arguing that rates should have been raised immediately.

The US July employment report due on Friday could offer fresh clues on the Federal Reserve's next policy move. Crude oil prices have remained highly volatile since the US and Israel launched attacks on Iran in late February, with both Brent and WTI surging above $100 per barrel multiple times on fears of supply disruptions.