This content was published on
August 3, 2026 - 02:08
4 minutes
(Bloomberg) — Oil dropped and US equity-index futures rose 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.Brent for October fell as much as 7.3% to $81.55 a barrel after Trump said he’d agreed to call off a massive attack on Iran as 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.Contracts for the S&P 500 Index climbed 0.3%, while those for the Nasdaq 100 Index advanced 0.5%. The risk-sensitive Australian dollar led gains against the greenback, while the yen slipped as traders remained alert for further coordinated intervention to support the currency. The currency traded around 157.70 per dollar.MSCI’s gauge for Asian equities fell 1%. The Kospi Index in South Korea declined over 4% after a record 18% jump on July 31. A Bloomberg gauge of the dollar dropped 0.2%, while Treasuries rallied with the yield on the 10-year bond falling five basis points.The moves in oil come after days of escalating tensions that saw the US threaten to hit the Islamic Republic “very hard” in a bid to end a conflict now in its sixth month. A supply squeeze triggered by the conflict has driven up fuel costs, stoking fears of another inflation spike and unsettling global stock, bond and currency markets.In other corners of the market, gold rose to around $4,080 an ounce as inflation concerns eased with oil’s drop.Back to geopolitics, Trump suggested a deal on reopening the Strait of Hormuz may be close, and said he would also continue to pursue a path to end Iran’s nuclear program.Iranian Foreign Minister Abbas Araghchi said earlier Sunday on Telegram that negotiations between Iran and Oman are in the final stages. The two countries that flank the strait are discussing a new route through it, but the talks don’t cover whether the strait will be closed or open, Araghchi spokesman Esmail Baghaei said in an interview on Iranian state-run TV.“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.”Early attention in Asia is on the yen, with markets on high alert for more joint intervention by Japan and the US on Monday after coordinated operations in Tokyo and New York last week triggered a dramatic rebound in the currency.Japan’s Ministry of Finance said it conducted a yen-buying operation on July 31, US time, in coordination with the US Department of Treasury and wouldn’t hesitate conducting further joint intervention. Trump told reporters on Sunday that the move was “a signal of friendship.”Treasury Secretary Scott Bessent said that the US stepped in to help fight “disorderly” movements in the yen and is ready to keep helping Japan.“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 9:06 a.m. Tokyo time Hang Seng futures were little changed Japan’s Topix fell 1.6% Australia’s S&P/ASX 200 fell 0.4% Euro Stoxx 50 futures rose 0.3% CurrenciesThe Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.1% to $1.1540 The Japanese yen fell 0.2% to 157.70 per dollar The offshore yuan was little changed at 6.7490 per dollar The Australian dollar rose 0.4% to $0.7044 CryptocurrenciesBitcoin was little changed at $63,421.26 Ether fell 0.1% to $1,879.55 BondsThe yield on 10-year Treasuries declined four basis points to 4.69% Japan’s 10-year yield advanced 1.5 basis points to 2.805% Australia’s 10-year yield was little changed at 4.93% CommoditiesWest Texas Intermediate crude fell 4.6% to $80.76 a barrel Spot gold rose 0.8% to $4,078.20 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Matthew Burgess.©2026 Bloomberg L.P.
