Oil plunges over 5% as Trump claims imminent Iran deal, Tehran denies

Published Aug 3, 01:21 PM UTC

Oil prices fell over 5% on Monday, with Brent crude dropping below $83 per barrel, after US President Donald Trump called off planned strikes on Iran and claimed a peace deal was 'imminent'. However, Iran's foreign ministry denied any plans for negotiations, stating it had 'no plan to receive a delegation or send an Iranian one'. Iran is in talks with Oman for a temporary safe route through the Strait of Hormuz but said a permanent solution is not close while US 'aggression' continues. European stock markets rose on the diplomatic hopes, with Germany's Dax up 1.3% and France's Cac 40 up 1.2%. UK petrol prices have risen to 160.85p per litre, the highest since 2022, due to the conflict. Analysts warn that while diplomatic progress reduces tail risk, supply normalisation through the Strait of Hormuz remains uncertain.