Crude oil prices fell sharply while stocks and government bonds rallied on Monday after Donald Trump cancelled planned strikes on Iran and said peace talks were about to resume. Brent crude was 5% lower at $83.47 a barrel, after a 7.3% drop to $81.55, and US West Texas Intermediate fell more than 5% to $79.47.

Fuel prices for UK motorists rose, with petrol hitting an Iran‑war high of 160.85p a litre and diesel climbing above 180p for the first time since 9 June. Simon Williams of the RAC said unleaded is up 7% since 6 July, while diesel is up 10%, almost reversing June’s record drop.

Kathleen Brooks of XTB said the oil price drop should ease inflation fears and dampen bond yields, which jumped to a 19‑year high on 30‑year US Treasuries. European shares rose, Stoxx 600 up 0.5%, FTSE 100 up 30 points, while Astra Zeneca’s tie‑up talks with Bristol Myers Squibb weighed on the index.

Two Saudi tankers crossed the Bab el‑Mandeb strait and Hormuz traffic slowed after vessel attacks; the UK Maritime Trade Operations Centre reported three more attacks. OPEC+ agreed to add 188,000 bpd from September, but Gulf disruptions limited impact. The yen rose to a three‑month high after Japan and the US backed its support.