Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Dives As Trump Calls Off Strikes Against Iran

• WTI crude fell below $81.50-$82.00 support and is attempting to settle below the key $80.00 level, with traders betting on a deal to reopen the Strait of Hormuz
• Brent crude is testing below its 50-day moving average at $85.05, with next support targets at $82.00-$82.50 if the decline continues
• Natural gas is testing resistance at $2.75-$2.80, supported by bullish weather forecasts, with potential to move toward $3.00-$3.05 if resistance breaks

Summary

Oil prices fell sharply on August 3, 2026, after President Trump called off planned military strikes against Iran to allow more time for diplomatic negotiations regarding the Strait of Hormuz.

Key Developments

WTI crude broke below the $81.50-$82.00 support level and attempted to settle below the psychologically important $80.00 mark. If successful, WTI could decline toward $77.50-$78.00. Brent crude tested the 50-day moving average at $85.05, attempting to settle below $83.00, with potential downside targets at $82.00-$82.50 and subsequently $77.50-$78.00.

The sell-off was driven by growing expectations that Iran would reopen the Strait of Hormuz. Iran and Oman are negotiating a temporary safe passage route for vessels through the strait, though Iranian officials denied direct negotiations with the U.S. Trump contradicted this claim, stating Iran was indeed negotiating and demanding complete reopening of the strait.

Iran, facing severe economic pressure, appears ready for a temporary deal after previously rejecting Oman's proposals. The energy-critical strait's potential reopening would significantly increase global oil supply.

Natural gas moved counter to oil, gaining +0.72% and testing resistance at $2.75-$2.80, supported by bullish weather forecasts. A break above $2.80 would target the $3.00-$3.05 level.

Market Implications

Traders should prepare for heightened volatility, as oil prices remain extremely sensitive to Middle East geopolitical developments. A diplomatic breakdown could trigger sharp rallies if U.S. military action resumes.