Stocks Market
Gold Gains as Oil Prices Plunge After US Halts Iran Strike Plans
U.S. President Donald Trump announced a pause on the planned large‑scale strike against Iran, sending oil prices sharply lower while the gold market edged higher. The move rekindles hopes for a diplomatic resolution that could reopen the Strait of Hormuz and calm tensions across the Middle East. Investors now turn their focus to upcoming U.S. economic data, especially the jobs report, to gauge the next steps of monetary policy.
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Market Snapshot
On Monday, August 3, 2026, oil prices retreated sharply while gold ticked higher following President Donald Trump’s decision to pause a planned large‑scale strike against Iran. The easing of hostile expectations has revived optimism for a diplomatic pathway that could see the Strait of Hormuz reopened and regional tensions eased.
Oil Prices Slide
Brent crude fell 4.41% to $84.05 per barrel, and the U.S. West Texas Intermediate (WTI) slipped below the $81 mark. This decline comes after weeks of heightened volatility driven by geopolitical frictions in the Gulf and disruptions to maritime transport and oil infrastructure.
Gold Holds Firm Above $4,100
In contrast, the gold price rose 0.14% to $4,112.80 per ounce. The drop in oil eased concerns about a new inflationary surge and allowed the yellow metal to benefit from a weaker U.S. dollar, making it more attractive to investors using other currencies.
Trump’s Diplomatic Shift
Trump announced on Saturday night that the United States had suspended its planned strike after Iran and several Middle‑Eastern countries requested additional time to negotiate an agreement. The discussions are expected to focus on the immediate and full reopening of the Strait of Hormuz and on Iran’s nuclear program, although Washington remains ready to act if diplomacy fails.
U.S. allies in the region, including Saudi Arabia, have also been urged to halt any planned strikes and prioritize negotiations.
Upcoming U.S. Data
Markets now look ahead to a data‑heavy week in the United States, with particular emphasis on the monthly employment report due on Friday. The report will be closely watched for clues on the trajectory of U.S. monetary policy.
Last week, the Federal Reserve kept its policy rate unchanged, but three Fed officials warned that a prolonged delay in tackling inflation could eventually require a more aggressive tightening. Current market pricing suggests roughly a 68% probability of a 25‑basis‑point rate hike in September.
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