Trump's "Iran attack withheld" remark...WTI and Brent crude plummet 4% simultaneously

▲ US, Iran, Strait of Hormuz, Crude Oil/AI-generated image

International oil prices plummeted by more than $4 per barrel after U.S. President Donald Trump decided to halt further attacks on Iran. Oil prices, which had surged by over 20% last month, reversed course in just one day.

According to the economic news outlet CNBC on August 3 (local time), Brent crude futures fell 4.64% to $83.85 per barrel. West Texas Intermediate (WTI) crude dropped 4.74% to $80.66.

Brent crude and West Texas Intermediate (WTI) both rose by over 20% last month. This was due to the resumption of hostilities between the US and Iran, coupled with continued tanker attacks near Oman. Growing security concerns also led to a decrease in ships attempting to enter the Gulf waters.

On the 1st, Trump announced via his Truth Social account that Iran and Middle Eastern countries had requested time to finalize negotiations. Trump explained the negotiation goals as the “immediate and complete full reopening” of the Strait of Hormuz and the “end of Iran's nuclear threat.”

Tensions have not been fully resolved. The UK Maritime Trade Operations (UKMTO) reported three additional tanker attacks since the 1st. While ship traffic in the Strait of Hormuz has slowed, two Saudi Arabian crude oil tankers passed through the Bab-el-Mandeb Strait in the Red Sea.

IG market analyst Tony Sycamore stated, "The bigger concern is whether this week will repeat the trend of last week." He pointed out that if Iran continues to leverage control over the Strait of Hormuz, negotiation expectations could collapse again. OPEC+ decided to further increase its production limit by approximately 188,000 barrels per day starting in September.

[Article Key Summary]

-Brent crude and West Texas Intermediate (WTI) plummeted by over 4% after Trump halted further attacks on Iran.

-The U.S. and Iran are pursuing negotiations for the full reopening of the Strait of Hormuz and the end of Iran's nuclear threat.

-Uncertainties in international oil prices remain due to ongoing tanker attacks and disruptions to strait navigation.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*