Oil Prices Drop Sharply Below $80 as Trump Confirms US-Iran Talks to Begin Monday
Highlights
- Oil prices dropped more than 6% amid hopes of US-Iran war peace deal.
- President Donald Trump confirmed negotiations would begin on Monday.
- Bitcoin still plunges below $63K despite dip in oil prices, US dollar index and 10-year Treasury yield.
Oil prices dropped more than 6% today, plunging below $80 per barrel after surging more than 20% last month. This happened as President Donald Trump confirmed US-Iran peace talks would begin on Monday, after he canceled a major military operation amid growing diplomatic deals.
Oil Prices Plunge as Trump Signals US-Iran Peace Talks to End War
Iran’s Foreign Minister Abbas Araghchi said negotiations between Iran and Oman over the Strait of Hormuz are in the final stages. Meanwhile, Iran’s Foreign Ministry spokesperson Esmaeil Baghaei also added that the negotiations aimed at finding a mutual mechanism for the management of the Strait of Hormuz.
With the Iran-Oman diplomatic deal nearing completion, US President Trump called off a massive attack after requests by Saudi Arabia, the UAE, and Qatar. “There’s a deal on Hormuz and then there will be a deal on the denuclearization of Iran,” he added.
Trump confirmed negotiations with Iran to begin Monday afternoon. He claimed this will decide further talks on opening the Strait of Hormuz and denuclearization.
When asked about a deadline for negotiations with Iran, Trump said “We’ll just see how it is. We’re ready to go any time we want. Would I rather make a deal? I’m not looking to kill people… We don’t want that.”
As a result, oil prices sharply dropped more than 6% to $79 per barrel on August 3. US stock futures surged on hopes of ending Middle East tensions, with S&P 500 futures up more than 0.5%.
BREAKING: US oil prices crash below $79/barrel after President Trump cancels US strikes on Iran and says a deal is near. pic.twitter.com/NIpHBMMkBw
— The Kobeissi Letter (@KobeissiLetter) August 2, 2026
Bitcoin Still Tumbles Below $63K
Bitcoin plunges more than 1% in a few hours despite a massive drop in oil prices amid hopes of US-Iran war talks. Notably, the US and Israel considered a land blockade on Iran last week that caused Bitcoin to drop below $64K.
Meanwhile, the US dollar index (DXY) fell to 99.50 today amid a joint US-Japan intervention to buy Yen as it slid to 40-year lows. Also, the 10Y Treasury yield slipped under 4.7%, retreating from an 18-month high, but Bitcoin remains under selling pressure.
Bitcoin price is currently trading at $62,760. The 24-hour low and high are $62,717 and $63,714, respectively. Trading volume has increased by 7% over the past 24 hours.
While long-term spot holders face drawdown, experienced traders frequently navigate these periods of high volatility by using the best crypto leverage trading platforms to short or hedge.
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