Brent crude drops 7.4% to $83.41 after US-Iran talks, OPEC+ move
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Oil prices drop sharply on Monday, with Brent crude sliding 7.4% to $83.41 per barrel and West Texas Intermediate falling to $79.60, as diplomatic overtures between the United States and Iran ease supply disruption fears. The sell-off intensifies after OPEC+ confirms it will increase collective output by 188,000 barrels per day starting in September, including a 10,000 bpd rise from Kazakhstan. The decline comes even as President Trump reveals he halted a planned ‘massive attack’ on Iran at the request of Gulf neighbors.
U.S.-Iran Diplomacy
President Donald Trump announced on Monday that negotiations with Iran would restart, expressing optimism for a deal on the Strait of Hormuz and Iran’s nuclear disarmament. Trump revealed he halted a planned ‘massive attack’ on Iran following pleas from Saudi Arabia, the UAE, Qatar, and other Gulf states, describing it as potentially ‘the biggest since World War II.’ Brent crude, which had hit $90.80 on Friday, tumbled as the comments eased fears of a Middle East supply disruption.
OPEC+ Production Increase
The OPEC+ alliance, comprising Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, confirmed a collective output hike of 188,000 barrels per day starting in September. Saudi Arabia and Russia will each add 62,000 bpd, while Kazakhstan is set to increase by 10,000 bpd. The group underscored a shared commitment to market stability and plans to convene again on Sept. 6. The decision compounded downward pressure on prices already reeling from the diplomatic news.
What's Next
U.S.-Iran negotiations are set to resume as early as Tuesday, Aug. 4, with markets watching for any sign of a deal that could lift sanctions and boost Iranian exports. It remains unclear whether the diplomatic push will succeed or if OPEC+ will adjust its output policy at the Sept. 6 meeting amid the price slide.
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Brent crude drops 7.4% to $83.41 after US-Iran talks, OPEC+ move
