Oil prices tumbled in Asian trading Monday as geopolitical risk premiums faded following President Donald Trump’s announcement that he had called off a planned military strike on Iran.
West Texas Intermediate futures for September delivery fell 4.5% to $80.89 per barrel, while Brent crude futures for October delivery dropped 4.4% to $84.10 a barrel.
The selloff came after Trump disclosed early Sunday that he had postponed planned military action against Iran at the request of Tehran and other Middle Eastern nations. The president suggested that the outline of a potential diplomatic agreement had been reached.
“We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to,” Trump wrote in a Truth Social post.
Proposed Agreement Terms
According to Trump, the proposed deal would include the “Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran’s nuclear threat.” The Strait of Hormuz is a critical shipping chokepoint through which roughly one-fifth of global oil supplies pass.
CNBC reported that Trump had been considering another round of strikes on Iran as diplomatic efforts to resolve the conflict, which began on February 28, appeared to be stalling.
Iran’s Cautious Response
Tehran responded to Trump’s announcement with measured skepticism. Seyyed Majid Ibn Al-Reza, Iran’s acting defense minister, acknowledged the statement while framing it as potentially part of a broader information campaign.
“Although the enemy’s recent statements are part of a psychological and cognitive warfare campaign, we consider every threat to be real and take it seriously,” Ibn Al-Reza said, according to state media.
Iran’s Fars International news agency, which maintains ties to the Islamic Revolutionary Guard Corps, was more dismissive of Trump’s proposal. The outlet characterized the president’s demands as a “wish list” in a Telegram post Sunday.
Market Implications
The decline in crude prices reflects traders quickly unwinding positions that had priced in potential supply disruptions from military action in the Middle East. Any conflict involving Iran carries the risk of affecting oil flows through the Strait of Hormuz, a vulnerability that typically adds a risk premium to oil markets.
The sudden shift from potential military escalation to diplomatic engagement has removed some of that premium, at least temporarily. However, the skeptical response from Iranian media outlets suggests the situation remains fluid, and the proposed agreement’s terms have yet to be formally negotiated or confirmed by both sides.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/03/oil-prices-today-wti-brent-hormuz-trump-iran.html
This article is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Do your own research and consult a licensed professional before making financial decisions.
