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3 August 2026 07:11  |

Oil Prices Plunge After Trump Calls Off Strike

Global oil prices fell sharply during Asian trading on Monday after U.S. President Donald Trump announced the cancellation of planned strikes against Iran. The news prompted investors to reduce the geopolitical risk premium that had previously supported energy prices.

West Texas Intermediate (WTI) futures for September delivery dropped 4.5% to US$80.89 per barrel, while Brent crude for October delivery fell 4.4% to US$84.10 per barrel.

Trump stated that the planned strikes were called off after Iran and several Middle Eastern nations asked Washington to delay military action. These requests followed the emergence of a preliminary framework for an agreement to de-escalate regional tensions.

The proposed deal reportedly includes the full and immediate opening of the Strait of Hormuz and an end to Iran's nuclear threat. The prospect of reduced disruptions to a key global oil trade route immediately weighed on oil prices.

However, Tehran has responded cautiously to Trump's statement, maintaining that it treats any threat seriously. Iranian media affiliated with the Islamic Revolutionary Guard Corps also dismissed Trump's demands as merely a "wish list," meaning uncertainty regarding the conflict continues to loom over the market.

Source: Newsmaker.id

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