Oil prices declined after US President Donald Trump announced that new talks with Iran would begin on Monday, following his decision to call off a planned attack on the Islamic Republic.

The news, reported by Bloomberg Markets on Aug. 3, immediately impacted global oil markets, reversing earlier gains as investors reacted to the potential de-escalation of tensions in the Middle East.

Market analysts noted that the sudden shift in US-Iran relations introduced significant uncertainty, with Brent crude futures dropping over 2% in early trading. The move highlights how geopolitical developments can rapidly influence energy commodity pricing.

Traders are now closely watching the upcoming negotiations, scheduled to start Monday, for signals on whether the temporary easing of hostilities will hold. Market sentiment remains fragile, with many expecting continued volatility in oil prices until the outcome of these diplomatic efforts becomes clearer.