Brent crude fell about 7% on Monday 3 August 2026 to a three-week low, and by Wednesday morning was trading below $80 a barrel, as markets rapidly unwound the war-risk premium built into oil prices during months of US-Iran conflict. The selloff followed President Donald Trump's decision to halt planned strikes on Iran and his announcement that negotiations would resume.
According to The Guardian, Brent was trading 5% lower at $83.47 a barrel by lunchtime on 3 August, after falling as much as 7.3% to an intraday low of $81.55. US West Texas Intermediate (WTI) dropped more than 5% to $79.47 a barrel the same day. Gulf News, citing OilPrice.com data, put Brent at $79.61 a barrel (+0.34%) and WTI at $75.88 (+0.15%) as of 10:58 Tokyo time on Wednesday 5 August, describing the gains as modest and noting that traders are not yet convinced the geopolitical risk has disappeared.
The drop marked a sharp reversal after a torrid July: The Guardian reports that both global benchmarks jumped more than 20% last month, as fighting between the US and Iran resumed and attacks on tankers in the Strait of Hormuz revived fears for the safety of ships transiting the key passage. Algeria Digest reported that on 29 July Brent pushed above $90 a barrel, lifted by renewed Middle East fighting and tighter US inventories.
According to The Guardian, Trump said late on Saturday 1 August on his Truth Social platform that Iran and other Middle Eastern countries had asked for time to complete a deal that would lead to "the Immediate, Complete and Total" reopening of the Strait of Hormuz and "an end to Iran's nuclear threat". On Sunday he said talks would begin on Monday, a claim denied by Tehran.
The drop in crude supported European equity markets on Monday: the pan-European Stoxx 600 rose 0.5%, with energy stocks sliding 2% and travel and leisure shares gaining 2.1%, while London's FTSE 100 added about 30 points by midday, The Guardian reported. Kathleen Brooks, research director at broker XTB, told the newspaper that the fall in oil prices should ease inflation fears and could act as a dampener on bond yields.
Gulf News notes that the Strait of Hormuz remains the key wildcard: a deal "on paper" would not necessarily mean an immediate return to normal shipping, since tankers need assurances on security, navigation and insurance before operators resume regular voyages. The same report says OPEC+ approved a production increase of about 188,000 barrels per day on Sunday 2 August, a move that could, in the report's view, add downward pressure on prices if Middle Eastern exports recover.
Sources
- Gulf News — "Brent tops $79: Oil prices edge higher as markets weigh US-Iran talks, Hormuz reopening" (5 August 2026): https://gulfnews.com/business/energy/brent-tops-79-oil-prices-edge-higher-as-markets-weigh-us-iran-talks-hormuz-reopening-1.500630928
- The Guardian — "Oil prices plunge and Europe's markets rally after Trump calls off Iran strikes" (3 August 2026): https://www.theguardian.com/business/2026/aug/03/oil-prices-fall-europe-stock-markets-donald-trump-iran-us-brent-crude
- Algeria Digest — "Oil prices swing after Brent tops $90 on supply strains" (July 2026): https://algeriadigest.com/oil-prices-swing-brent-90-supply-strains/
