Why did oil prices slump after Trump announced the cancellation of a planned attack on Iran?

Oil prices slumped because President Trump announced he had called off a 'massive attack' on Iran after allies including Saudi Arabia urged him to pursue a diplomatic deal instead; he stated the attack was canceled 'subject to being able to rapidly make a DEAL' to reopen the Strait of Hormuz, reducing immediate fears of supply disruption in a critical global oil chokepoint.

What is the current status of negotiations between Iran and Oman regarding the Strait of Hormuz?

Iranian Foreign Minister Abbas Araghchi said negotiations between Iran and Oman are 'in the final stages', focusing on establishing a new route through the Strait of Hormuz, though his spokesman clarified that the talks do not address whether the waterway will be closed or open.

Oil Slumps as Trump Holds Off Iran Attack as Talks to Resume

Aug 2, 2026

Oil prices plunged after President Trump canceled a planned attack on Iran to pursue diplomatic talks reopening the Strait of Hormuz. Brent crude fell 7.3% to $81.55 while OPEC+ approved production quota increases amid ongoing regional tensions.

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