Oil Prices Plunge Around 5% After Trump Cancels Iran Strikes

International oil prices plummeted by around 5% on the 3rd, local time, as U.S. President Donald Trump shifted course toward resuming dialogue after threatening and then calling off a massive military strike against Iran.

On this day, the closing price for October Brent crude futures on the ICE Futures Exchange fell 4.7% from the previous trading session to 83.77 dollars per barrel.

On the New York Mercantile Exchange, the closing price for September West Texas Intermediate (WTI) crude futures dropped 5.1% from the previous session to 80.34 dollars per barrel.

Driven by this sharp decline, WTI futures closed at their lowest level since July 16.

Previously, President Trump had signaled a powerful strike against Iran during a cabinet meeting he hosted on July 31 at Camp David in Maryland.

Expectations had also emerged that the U.S., alongside Israel, would strike Iran's energy infrastructure over the past weekend (August 1–2), potentially escalating the war.

However, after announcing on social media late on the 1st that the attack was abruptly canceled at the request of Middle Eastern nations, he told reporters on the 2nd that "there is an agreement regarding Hormuz" and that a denuclearization agreement with Iran would follow.

In particular, he stated that talks with Iran would begin on the afternoon of the 3rd.

Conversely, Iran denied that any talks with the U.S. were scheduled.

During a briefing that day, Iranian Foreign Ministry Spokesperson Esmail Baghaei stated that negotiations are currently underway with Oman regarding an agreement on safe passage routes for vessels navigating the Strait of Hormuz. He drew a hard line by stating that these talks are "a matter between Iran and Oman," which share the Strait of Hormuz as their territorial waters, leaving no room for U.S. intervention.

Experts note that uncertainty over oil prices remains unresolved, pointing out that the cycle of President Trump threatening a massive strike, withholding it under the pretext of dialogue, and Iran denying that talks are taking place has repeatedly occurred since the armistice memorandum of understanding (MOU) signed by the U.S. and Iran in mid-June was scrapped.

In a report, oil trading advisory firm Ritterbusch and Associates assessed that "today's sharp sell-off in crude futures appears to be another overreaction to President Trump's remarks."

Meanwhile, seven member countries of OPEC+, the grouping of the Organization of the Petroleum Exporting Countries (OPEC) and major oil-producing allies, held a video conference the previous day and agreed to implement an oil production increase of 188,000 barrels per day starting in September.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.