President Donald Trump said Monday that negotiations with Iran would begin imminently, after he called off what he described as "massive strikes" at the request of Qatar, Saudi Arabia and the United Arab Emirates. The announcement sent crude oil prices tumbling more than 6 percent and lifted U.S. stocks at the opening, with the Dow Jones rising 1.3 percent, the Nasdaq up 1.2 percent and the S&P 500 gaining 0.9 percent.
Trump said the talks would aim to end the conflict and revive stalled cargo traffic through the Strait of Hormuz, a crucial waterway through which about a fifth of all traded oil and natural gas passed before the war. Iran denied that any talks were taking place.
Later, Trump said discussions were ongoing "right now" and that it was Tehran's "last chance" to reach a deal. He accused Iran of duplicity and demanded a deal or "total surrender," also saying that access through the strait would remain entirely up to the United States, according to reports.
Brent crude fell to $83.53 a barrel, Middle East Eye reported, while Fortune put the price at $83.66 after a 4.9 percent decline. U.S. crude dropped 5.8 percent to $79.81. Fortune also reported Dow futures rising 1.1 percent before the open.
Trump also criticized major oil companies, including Chevron and Exxon Mobil, for making "too much money" because of high prices caused by the shortage from the Iran conflict. In a Truth Social post, he urged them to lower consumer retail prices immediately, saying that without his administration's "genius," the oil industry and the country would be dead.
Separately, oil exports from Venezuela plunged in July due to weaker demand from India after the pause in the Iran war unlocked Middle Eastern barrels trapped in the Persian Gulf, Bloomberg reported.