Oil prices fall nearly 5% after US announces new Iran talks

This live blog follows the latest developments across the Middle East crisis, including regional diplomacy, maritime security, ceasefire negotiations, and economic fallout.

Catch up on Sunday's top developments here:

• Trump says new talks with Iran to begin Monday after calling off strikes
• Israeli strikes kill 13 in Gaza
• Araghchi says Iran-Oman negotiations enter final stages
• Iran, Pakistan ties reach as high as Damavand, K2: Ambassador
• Iran media denies Trump claim that Tehran asked US not to strike

  
  

Oil prices fall nearly 5% after US announces new Iran talks

Published: Aug 3, 2026 | 00:29 GMT | by AFP

Oil prices tumbled on Monday in early Asia trade after US President Donald Trump announced fresh talks with Iran to end the Middle East war and reopen the Strait of Hormuz.

The war, which began in late February when the United States and Israel attacked Iran, has caused oil prices to swing sharply as it effectively closed the waterway, a vital route for global oil and gas supplies.

At around 2250 GMT on Sunday, the price of a barrel of Brent North Sea, the benchmark international oil contract, for September delivery was down 4.69% at $83.81.

Its American equivalent, West Texas Intermediate, fell 4.67% to $80.72.

Trump said on Sunday that fresh negotiations with Iran will begin on Monday after holding off on major strikes against the Islamic republic to pursue a deal.

"Now what we're doing is we're talking to them in the form of a negotiation. It begins tomorrow afternoon," he said, without providing further details of the venue of the talks or the participants.

Hours after the US had called off major strikes on Iran on Sunday said it was nearing a deal with Oman over a new route through the Strait of Hormuz.

Tanker off Oman reports explosion near vessel: monitor

Published: Aug 3, 2026 | 00:24 GMT | by AFP

The master of a tanker off the coast of Oman has reported hearing an explosion near the vessel, the United Kingdom Maritime Trade Operations (UKMTO) Centre reported Sunday.

"The vessel and crew are all reported as safe," said the UKMTO. The master is the highest-ranking person on an oil tanker.

The incident happened 20 nautical miles (37 kilometres) northeast of Khasab, in Oman, the monitor added.

"Vessels are advised to transit with caution and report any suspicious activity," the UKMTO advised.

New US-Iran talks to begin today after Trump 'holds' planned strikes

Published: Aug 2, 2026 | 22:20 GMT | by AFP

US President Donald Trump said that negotiations with Iran will begin Monday after he decided to hold off on new strikes against the Islamic republic to pursue a deal.

"Obviously, they don't want to be attacked. They knew the extent of the attack because they saw it forming," Trump told reporters on Sunday aboard Air Force One. "Now what we're doing is we're talking to them in the form of a negotiation. It begins tomorrow afternoon."

Israeli strikes kill 13 in Gaza

Published: Aug 2, 2026 | 20:48 GMT | by AFP

Israeli strikes on Gaza hit multiple residential buildings and killed at least 13 people, authorities said Sunday, despite Hamas saying it agreed to the latest stage of a deal to end the war.

Hamas said Friday it had agreed to a plan championed by US President Donald Trump that includes provisions for handing over its weapons and the gradual withdrawal of Israeli forces from the Gaza Strip.

Israel has yet to comment on the agreement officially, but a political source has told AFP "that there will be no withdrawal whatsoever" without Hamas's "genuine disarmament."

For earlier developments, read our Aug 2 live blog here