Oil falls by more than $4 after U.S. abandons planned strike on Iran

Global oil prices fell sharply on August 3 after U.S. President Donald Trump abandoned a planned strike on Iran and said he would seek an agreement with Tehran.

Brent crude futures fell 5.1% to $83.44 a barrel, while U.S. West Texas Intermediate crude dropped 5.8% to $79.77 a barrel. Both benchmarks lost more than $4 during trading.

Prices declined as concerns eased over a further escalation of the conflict and possible disruptions to oil shipments through the Strait of Hormuz.

Trump said Iran and other countries in the region had requested more time to complete negotiations that could lead to the restoration of shipping through the strait.

Oil prices also came under pressure from an OPEC+ decision to increase production by 188,000 barrels per day in September.

Market participants remained cautious, however, as a failure of the talks could revive geopolitical risks and push oil prices higher again.

N.Tebrizli