Return to Diplomacy Brings Reprieve for Oil Prices -- WSJ

President Trump's latest pivot back to diplomacy has sent oil prices sliding.

Brent crude, the international benchmark, is about 5% lower on hopes that an agreement to finally reopen the Strait of Hormuz could be reached. Trump said yesterday that the U.S. would engage in talks starting later today.

His shift from threats to dialogue--a dynamic that's become familiar by now, though it hasn't yielded much progress--was enough to start August trading on a brighter note after a volatile July. U.S. stock futures advanced and bond yields retreated.

Over in Asia, the yen has strengthened modestly against the dollar after the U.S. and Japan jointly acted to prop the currency, which hit a 40-year low late last month.

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(END) Dow Jones Newswires

August 03, 2026 07:57 ET (11:57 GMT)