Oil prices fell after Trump said he would forgo a new attack on Iran to seek a quick deal
Trump announced he was foregoing a new attack on Iran in search of a quick deal that would halt Tehran’s nuclear ambitions and reopen the Strait of Hormuz. Oil prices fell more than $4 a barrel on Monday after Trump canceled a planned attack on Iran and sought a nuclear deal.
Brent crude futures fell $4.65, or 5.29%, to $83.28 as of 08:02 GMT, while WTI crude traded down $5.20, or 6.14%, at $79.47 a barrel.
Both contracts had risen more than 20% last month, as renewed clashes between the U.S. and Iran and attacks on several tankers around Oman raised security concerns, deterring shippers from entering the Gulf to load oil.
The question now is whether this week will be a repeat of last week; hopes for a deal will be dashed again if Iran continues to resist and use its control over the Strait, potentially through an attack on a US base or a tanker passing through the waterway.
OPEC+ agrees to September oil production increase. On Sunday, the Organization of Petroleum Exporting Countries and its allies (OPEC+) approved an increase in their oil production quota of approximately 188,000 barrels per day starting in September, marking the completion of a phase of voluntary production cuts by the group of producers.
Export disruptions from the Gulf, Russia, and Kazakhstan caused by the wars in Iran and Ukraine have meant that for much of this year, OPEC+'s monthly increases have failed to translate into extra oil supply to the market and have had little impact on prices.
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