Key facts
- WTI crude futures fell over 6%.
- WTI crude futures dropped to around $79.30 a barrel.
- President Donald Trump announced the cancellation of planned attacks on Iran.
- President Trump stated a preference for peace talks with Iran.
- OPEC+ agreed to boost production targets.
- The production boost is by 188,000 b/d.
- The OPEC+ boost starts in September.
Benchmark West Texas Intermediate (WTI) crude futures experienced a significant drop, falling over 6% to trade around $79.30 a barrel. The market reaction was triggered by President Donald Trump's announcement that he has decided to cancel planned military strikes against Iran. Instead of direct military action, President Trump indicated a preference for pursuing peace talks with Iran. This development, coupled with a decision by OPEC+, to boost production targets, contributed to the downward pressure on oil prices. OPEC+ agreed to increase their collective production targets by 188,000 barrels per day, with the new targets set to take effect starting in September. The combination of de-escalation in geopolitical tensions and an anticipated increase in oil supply has led to a sharp decline in crude prices.