Oil prices tumbled on Monday, August 3, 2026, after US President Donald Trump announced that fresh talks with Iran would begin later that day. The negotiations are expected to cover critical issues including the Strait of Hormuz, a vital route for global energy supplies, and the denuclearisation of Iran.

Trump's announcement followed previous threats to strike Iran "very hard" and reports that he was considering renewed attacks on Iranian energy infrastructure, though he later pulled back from those threats.

Meanwhile, the Japanese yen extended gains after US and Japanese officials confirmed a rare joint intervention to support the currency. This marked the first such coordinated effort in nearly three decades. Officials indicated they were prepared to conduct further joint interventions if necessary.

The yen had surged after hitting its weakest level since 1986, pressured by higher US interest rates, rising oil prices, and persistent capital outflows. Market analysts noted that this intervention signaled a shift in perception, with excessive yen weakness no longer seen as solely Japan's problem.

Stephen Innes of SPI Asset Management commented that Washington demonstrated a willingness to counter disorderly dollar strength when it threatens important allies and broader market stability.

Despite these developments, the positive news from the Middle East conflict had little impact on Asian equities. South Korea's Kospi index fell, dragged down by tech chipmakers SK hynix and Samsung following a record-breaking rally the previous Friday. On Wall Street, Amazon shares surged over 15% after reporting strong quarterly profits and revenue.

Sources