Oil Drops 7% as Planned Strike Is Held Back

August 3, 2026

News summary: Reuters reported Brent fell 7% to settle at $83.77/bbl and WTI fell 5.1% to $80.34/bbl after the United States held off a fresh attack on Iran and hopes of a deal increased, although Iran said no talks were under way.

Market context: Futures repriced diplomacy faster than physical logistics normalised: Hormuz traffic was still disrupted and some Saudi tankers were rerouting around southern Africa after Houthi threats.