This content was published on
August 3, 2026 - 00:09
3 minutes
(Bloomberg) — Oil dropped, US equity futures rose and the dollar slipped after President Donald Trump said fresh US-Iran talks would begin Monday, boosting optimism the two sides could reach a deal to reopen the Strait of Hormuz.S&P 500 contracts climbed in early trading after the underlying gauge rose 0.7% on Friday. The risk-sensitive Australian dollar led gains against the greenback, while the yen edged higher as traders remained alert for further coordinated intervention to support the currency.Brent crude dropped more than 7% at the open after Trump said he’d agreed to call off a massive attack on Iran after allies in the Middle East, including Saudi Arabia, asked him to pursue a deal instead. Oil was also weighed by another small increase by major OPEC+ nations to their production quotas.“It would have been the biggest attack since World War II,” Trump said Sunday to reporters on Air Force One. “We’re just going to see whether or not we can make a deal.”The potential respite come after days of escalating tensions that saw the US threatening to hit the Islamic Republic “very hard” in a bid to bring an end to a conflict that’s now in its sixth month. A supply squeeze triggered by the conflict has pushed up the cost of fuel, stoking fears of another spike in inflation and ravaging global stock, bond and currency markets.Traders are also watching the yen for signs of further joint intervention by Japan and the US after coordinated operations in Tokyo and New York last week triggered a sharp rebound in the currency. Trump told reporters on Sunday that the move was “a signal of friendship.”Finance Minister Satsuki Katayama is set to announce as early as Monday that the two governments are working in tandem, according to a person familiar with the matter, reinforcing a partnership that Treasury Secretary Scott Bessent has signaled indirectly but forcefully via the media.“History is clear, joint FX intervention packs a punch, and investors should lean with the official flow, not against it,” Elias Haddad, global head of markets strategy at Brown Brothers Harriman, wrote in a note to clients. “Since 1998, all three coordinated US FX intervention episodes were successful.”Some of the main moves in markets:StocksS&P 500 futures rose 0.4% as of 7:01 a.m. Tokyo time CurrenciesThe euro rose 0.2% to $1.1553 The Japanese yen rose 0.2% to 157.02 per dollar The offshore yuan was little changed at 6.7489 per dollar The Australian dollar rose 0.3% to $0.7043 CryptocurrenciesBitcoin rose 0.3% to $63,613.78 Ether rose 0.6% to $1,893.74 CommoditiesWest Texas Intermediate crude fell 6.7% to $78.98 a barrel Spot gold rose 0.7% to $4,073.15 an ounce ©2026 Bloomberg L.P.
