Oil slides over 6% as Trump delays Iran strikes, signals peace talks

Published Aug 3, 04:57 PM UTC

Oil prices fell sharply on Monday after President Donald Trump signaled he was delaying further strikes against Iran and indicated that Middle Eastern allies had reached the outline of an agreement to end the war. Trump said the deal would include the full reopening of the Strait of Hormuz and an end to Iran's nuclear threat, with negotiations set to begin Monday afternoon. West Texas Intermediate crude dropped about 6.2% to around $79.45 a barrel, while Brent crude fell over 3.5% to about $79.30. However, a spokesman for Iran's foreign ministry denied that any negotiations with the U.S. were occurring or scheduled, stating that only discussions with Oman over Strait of Hormuz management were ongoing. Oil prices had spiked above $110 a barrel earlier in the year due to the conflict disrupting Middle Eastern oil shipments. The national average gas price in the U.S. stood at $4.095 per gallon, up 30% from a year ago, pressuring household budgets. Trump also publicly urged Chevron CEO Mike Wirth to lower consumer fuel prices.