Oil Prices Are Falling Again on Global Markets: Key Factors
3 August 16:11
Oil prices are falling sharply on Monday, August 3, amid hopes for a resolution to the Middle East conflict. This is reported by "Komersant Ukrainian", citing “Interfax-Ukraine.”
U.S. President Donald Trump wrote on the social media platform Truth Social on Sunday that he has decided not to launch massive strikes against Iran, but instead wants to try to achieve his goals through peaceful means.
According to Trump, Tehran itself “and other Middle Eastern countries” asked him to hold off on strikes against Iran.
Watch us on YouTube: important topics – without censorship
He later confirmed to reporters that he had received assurances from Saudi Arabia, Qatar, and the UAE regarding mutual understanding with Iran on the issue of the Strait of Hormuz.
“They believe we have an agreement on the Strait of Hormuz,” Trump said, responding to reporters’ questions aboard his plane.
He expressed the view that an agreement on the Strait of Hormuz would be reached “in the near future,” but did not specify what it might entail. He also said that the U.S. could resume strikes against Iran at any moment if the need arose.
The price of October Brent crude oil futures on the London-based ICE Futures exchange settled at $83.22 per barrel, down $4.71 (5.36%) from the previous session’s close. On Friday, these contracts rose by $1.05 (1.2%) to $87.93 per barrel.
September WTI crude oil futures on the New York Mercantile Exchange (NYMEX) electronic trading platform fell by $5.2 (6.14%) to $79.47 per barrel at that time. At the close of the previous session, their price had risen by $1.08 (1.29%) to $84.67 per barrel.
Oil prices ended July with a significant increase amid renewed mutual attacks between the U.S. and Iran: Brent rose by 24%, and WTI by 21%.
“The main question is whether this week will repeat last week’s scenario: hopes for a deal will once again be dashed, after which Iran will take a hard line and continue to use its control over the Strait of Hormuz to its own advantage,” says IG analyst Tony Sycamore.
This scenario, he says, involves a new attack by Tehran on a U.S. military base or a tanker in the Strait of Hormuz.
Read us on Telegram: important topics – without censorship
