Oil prices tumble over 5% after Trump shelves Iran strike

August 03, 2026 (MLN): Oil prices retreated in Asian trading on Monday after U.S. President Donald Trump declared that a planned military strike against Iran had been shelved, easing concerns over a potential escalation in the Middle East.

Currently, Brent crude futures is down, 5.09%, at $83.45 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $4.92, or 5.81%, to $79.75 per barrel by [09:48 am] PST.

In a post on Truth Social, Trump said he decided not to proceed with the attack following requests from Iran and several regional countries, adding that discussions had reached a stage where the framework of an agreement had been outlined.

According to Trump, the proposed arrangement would involve the immediate reopening of the Strait of Hormuz and measures aimed at addressing concerns surrounding Iran’s nuclear program.

The development comes after reports suggested Washington was considering fresh military action against Iran as diplomatic efforts to resolve the conflict, which began on February 28, appeared to be losing momentum, according to CNBC.

Iran reacted cautiously to Trump’s remarks. Acting Defense Minister Seyyed Majid Ibn Al-Reza said recent statements by the United States were part of a psychological campaign but stressed that Tehran treats all threats seriously and remains prepared for any scenario.

Meanwhile, Iran’s Fars International news agency rejected the proposal, describing Trump’s conditions as unrealistic and characterizing them as a list of demands rather than the basis for a negotiated settlement.

The easing of immediate geopolitical concerns reduced risk premiums in the oil market, putting downward pressure on crude prices at the start of the week.

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