Oil prices plunge after Trump signals easing of Iran conflict

Global oil prices tumbled on August 3, 2026, after U.S. President Donald Trump announced he would order American forces to refrain from further attacks on Iran and suggested a deal to end the ongoing conflict was imminent. Brent crude, the international benchmark, dropped 4.9% to $83.66 per barrel, while U.S. benchmark crude fell 5.8% to $79.81 per barrel. The retreat marked another dramatic swing in oil markets, which have seesawed since the U.S. and Israel launched strikes against Iran in late February 2026. Trump’s conflicting statements—just a day earlier he had warned of a potential military escalation, saying the U.S. military would ‘be hitting them very hard’—have repeatedly roiled energy markets. Futures for the S&P 500 rose 0.6%, the Dow Jones Industrial Average climbed 1.1%, and Nasdaq futures gained 0.3% ahead of the U.S. market open. In currency markets, the U.S. dollar weakened against the yen following coordinated intervention by the U.S. and Japan to support the yen’s value. The dollar fell to 155.20 yen early in the Tokyo session, down from recent highs near 164 yen, before stabilizing at 156.79 yen by day’s end. A weaker dollar can boost U.S. export competitiveness but also increases import costs for oil and other essential goods. Analysts noted the intervention signaled stronger U.S. support for Japan’s currency defense efforts. In Asian equities, Japan’s Nikkei 225 fell 0.9% to 63,754.90, while South Korea’s Kospi dropped 5.1% to 6,257.45 after surging 17.9% on July 31. Samsung Electronics and SK Hynix, the Kospi’s dominant components, both fell 8.8% after their sharp July 31 gains. Hong Kong’s Hang Seng rose 0.5% to 26,009.40, and the Shanghai Composite slipped 0.6% to 3,809.66. European markets showed mixed performance, with Germany’s DAX up 1.5%, France’s CAC 40 gaining 1.1%, and Britain’s FTSE 100 edging up 0.2%. The week ahead features key U.S. labor data, including the July jobs report, and a busy earnings season with major companies like Palantir, SpaceX, McDonald’s, The Walt Disney Co., and Uber reporting results.