Jakarta, ThedailyID — Global oil prices fell nearly 5% on August 3 after U.S. President Donald Trump delayed a planned military strike against Iran, raising hopes for renewed diplomacy and easing fears of supply disruptions.
Brent crude dropped 4.72% to US$83.78 per barrel. Meanwhile, West Texas Intermediate (WTI) fell 5.21% to US$80.26 per barrel, according to Oil Price.
The sharp decline followed a strong rally in July. Oil prices had climbed more than 20% as tensions between the United States and Iran escalated.
Attacks on oil tankers near Oman also fueled concerns over shipping security. The incidents prompted some shipping companies to avoid the Gulf region.
According to Reuters, market sentiment improved after Trump announced on August 1 that Iran and several Middle Eastern countries had requested more time to finalize a diplomatic agreement.
In a post on Truth Social, Trump said the proposed deal would fully reopen the Strait of Hormuz and eliminate Iran’s nuclear threat.
Despite the latest decline, analysts warned that the market remains highly sensitive to developments in the region.
IG market analyst Tony Sycamore said investors remain focused on whether negotiations can succeed after previous talks collapsed.
“The biggest question is whether this week repeats last week’s pattern, when optimism faded after Iran maintained its position and continued using its control over the Strait of Hormuz as leverage, including the potential for attacks on U.S. military bases or oil tankers,” Sycamore said.
