Oil Plunges as Iran Opens Door to Peace
Oil prices fell sharply during Monday's trading (August 3) after US President Donald Trump announced that new negotiations with Iran would begin. Hopes for a deal—and the potential reopening of the Strait of Hormuz have eased concerns regarding energy supply disruptions.
Brent crude futures for October delivery briefly dropped 7.3% to US$80.55 per barrel, while West Texas Intermediate (WTI) fell approximately 6% to US$80.63. Additional downward pressure stemmed from the decision by several OPEC+ nations to modestly increase production quotas.
The drop in oil prices helped alleviate inflationary pressure. The yield on the 10-year US Treasury note fell by about four basis points to 4.69%, while gold prices rose roughly 0.9% to around US$4,080 per troy ounce.
Newsmaker Analysis: Optimism regarding US-Iran peace is the primary market sentiment today. If the talks yield a concrete agreement and operations in the Strait of Hormuz return to normal, oil prices could remain under pressure and decline, while gold would likely find support. However, a failure in negotiations could rapidly reverse market direction and reignite volatility. (asd)*
Source: Newsmaker.id