Oil tumbles as Trump cancels attack on Iran to reach nuclear deal
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Oil prices tumbled $4 a barrel at Aug 3’s open after US President Donald Trump held off from a fresh attack on Iran.
PHOTO: BLOOMBERG
- Oil prices dropped $4 per barrel after US President Trump paused an attack on Iran to pursue a nuclear deal and reopen the Strait of Hormuz.
- Brent crude fell to $83.85 and WTI to $80.66, reversing July's 20% price increase driven by US-Iran tensions and tanker attacks near Oman.
- OPEC+ approved a 188,000 barrel daily production increase from September, but export disruptions from Gulf conflicts have limited the impact on the market.
AI generated
SINGAPORE – Oil prices fell more than US$4 a barrel on Aug 3 after US President Donald Trump held off on a fresh attack on Iran, seeking to reach a quick deal that would halt Tehran’s nuclear ambitions and reopen the Strait of Hormuz.
Brent crude futures fell US$4.65, or 5.29 per cent, to US$83.28 by 7.02am GMT (3.02pm Singapore time), while US West Texas Intermediate crude was at US$79.47 a barrel, down US$5.20, or 6.14 per cent.
Both contracts had jumped more than 20 per cent in July after fighting between the US and Iran resumed and as attacks on several tankers around Oman heightened security concerns, deterring shippers from entering the Gulf to load oil.
In a sign of de-escalation, Trump said late on Aug 1 on his Truth Social platform that Iran and other Middle Eastern countries had asked for time to complete a deal that would lead to “the immediate, complete and total” reopening of the strait and “an end to Iran’s nuclear threat”.
IG market analyst Tony Sycamore said: “The bigger focus is whether this week turns into a rinse and repeat of last week – with hopes of a deal collapsing as Iran digs in its heels and continues to leverage its control over the strait, potentially through an attack on a US base or a tanker transiting the waterway.”
Two tankers laden with Saudi oil crossed the Bab el-Mandeb Straitout of the Red Sea over the weekend while traffic in the Strait of Hormuz slowed following reports of vessel attacks, shipping data showed on Aug 3.
The United Kingdom Maritime Trade Operations has reported three more tanker attacks since Aug 1. On Aug 2, the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, approved an oil production quota increase of around 188,000 barrels a day from September, the producer group said, which would complete the producer group’s unwinding of a layer of voluntary output cuts.
Export disruptions from the Gulf, Russia and Kazakhstan – caused by the Iran and Ukraine wars – have meant successive monthly OPEC+ hikes over most of 2026 have not translated into extra oil on the market and have had little impact on prices. REUTERS