Crude oil futures tumbled more than 4% in Sunday evening trading after President Trump said he would hold off on major new strikes against Iran, adding to a week in which crude already fell 5.2%. OPEC+ also agreed to another production quota increase, set to start in September.
Crude oil futures tumbled more than 4% as Sunday evening trading opened, after Trump signaled he would pause plans for new strikes on Iran. Dow Jones futures rose 0.3%, with S&P 500 futures up 0.4% in the same session.
Trump Pulls Back From New Strikes
In a Saturday night Truth Social post, Trump said: "asked by Iran, and other Middle Eastern countries, to hold off any attack." He added that the outlines of a deal had been reached to reopen the Strait of Hormuz. Saudi Arabia's crown prince, Mohammed bin Salman, had urged him not to launch massive new strikes.
Tehran Disputes Reports of a Deal
Iranian media disputed Trump's account, saying no agreement exists to reopen the Strait of Hormuz. The denial comes days after Trump vowed last Wednesday to strike Iran hard, following a surprise Iranian missile attack on a U.S. base in Jordan.
A Rough Week for Crude
Sunday's move followed U.S. crude oil futures tumbling 5.2% to $84.67 a barrel last week, though they finished well off their lows. Prices had rebounded amid U.S.-Iran hostilities earlier in the week, before Trump's weekend announcement reversed the move.
OPEC+ also weighed on the market. The group agreed on another production quota increase, starting in September, though recent quota moves have been symbolic, as the Iran war continues to limit actual crude oil output and shipments.
Source: Investor's Business Daily
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