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Oil slides over 6% as Trump delays Iran strikes, signals peace talks
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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.
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Eric Revell Mon, August 3, 2026 at 9:57 AM PDT | 3 min read
- CL=F -1.08%
Oil prices fell on Monday as markets embraced hopes for de-escalation of the Iran war, despite uncertainty over the prospects for a Federal Reserve interest rate hike.
President Donald Trump on Sunday signaled he was holding off on ordering fresh strikes against Iran. He said he did so because U.S. allies in the Middle East have reached the outline of an agreement to end the war, adding that it would "include the Immediate, Complete and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran's nuclear threat."
Trump indicated the negotiations would begin on Monday afternoon, which caused oil prices to slide on the potential deal to restore the flow of oil shipments through the Strait of Hormuz. Shipments have been constrained amid the threat of Iranian attacks and mines during the conflict.
Prices for West Texas Intermediate crude, a key U.S. benchmark, were down about 6.2% during Monday morning, trading around $79.45 a barrel after a decline of about $5. Brent crude oil prices were down over 3.5% at around $79.30 a barrel.
A spokesman for Iran's foreign ministry said in a report by Reuters that no negotiations with the U.S. were occurring or scheduled, adding that the only ongoing discussions were with Oman over the management of the Strait of Hormuz.
Oil prices spiked above $110 a barrel earlier this year as the conflict disrupted oil shipments from the Middle East. Tanker traffic plummeted due to the threat of missile and drone strikes by Iran, as well as mines laid in the key shipping lanes of the Strait.
Before the outbreak of the conflict, oil prices were in the $60 to $70 a barrel range. The rise caused gas prices in the U.S. to surge. The national average price for a gallon of regular gasoline was $4.095 as of Monday, up 7% from a month ago and 30% from a year ago, which has pressured household budgets.
Trump wrote in a post on his Truth Social media platform that Chevron CEO Mike Wirth gave "all of the reasons that his company is doing so well" in an interview with FOX Business' Maria Bartiromo. Trump added that his administration has helped facilitate that success and urged him to lower prices for consumers.
"The only thing he conveniently forgot to mention is that, without the genius, foresight, strength, and stability, of the TRUMP Administration, the Oil Industry, and our Country itself, would be DEAD! As an example, they threw Mike and Chevron out of Venezuela, but now they're back, far bigger and stronger than ever before, expecting to make a fortune! That goes for other Oil Companies as well…and get your consumer (retail!) Oil Prices DOWN, NOW!" Trump wrote.
The White House has previously criticized gas stations for not lowering prices, accusing them of padding profit margins.
Groups representing smaller gas stations and energy marketers have pushed back on the argument, saying that retail prices are linked to oil prices and that they typically decline over several weeks after oil prices decline due to the need to turn over higher-cost inventory.
Original article source: Oil slides as Trump delays Iran strikes, signals peace talks
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Trump Calls Off Iran Attack, Oil Prices Plunge on Diplomatic Hopes