WTI and Brent Crude Oil Prices Drop Over 5%, Analyst Sees Remain Volatile

JAKARTA, Jakartaweekly.com—WTI and Brent crude oil prices plunged on Monday, August 3, 2026, according to Investing.com data as of 10:44 a.m. WIB. WTI crude fell 5.48% to US$80.12 per barrel after briefly touching US$79.67 per barrel. Meanwhile, Brent crude declined 4.99% to US$83.54 per barrel.

The sharp decline came after President Donald Trump announced that he had canceled plans for a large-scale U.S. military strike against Iran, following requests from Tehran and several Middle Eastern countries for additional time to negotiate the reopening of the Strait of Hormuz.

PT Traze Andalan Futures Director Ibrahim Assuabi forecasts that WTI crude will trade within a range of US$80.50 to US$96 per barrel this week. Brent crude is expected to move between US$95 and US$105 per barrel.

According to Ibrahim, crude oil prices are likely to remain highly volatile as long as geopolitical tensions persist. Despite today’s sharp decline, crude oil prices continue to show a strong upward trend over the past month, with both WTI and Brent gaining more than 16%.

Last week, crude oil prices were driven higher by concerns over Trump’s plan to launch a major military strike against Iran. However, following the latest announcement, oil prices eased significantly on Monday.

Ibrahim said the market is now closely monitoring further developments in geopolitical tensions. The United States and Israel remain determined to prevent Iran from enriching uranium. In addition, as long as the Red Sea and the Strait of Hormuz remain blocked, geopolitical tensions are expected to persist.

“In Eastern Europe, after Ukraine attacked a Russian vessel carrying weapons to Iran, Iran retaliated by launching an attack on the capital of Cyprus, further escalating tensions in the region,” Ibrahim said.

Meanwhile, investors are also awaiting the U.S. Senate’s decision on a US$95 billion budget bill, of which US$73 billion is reportedly allocated to finance the war against Iran. Trump is currently urging the Senate to approve the proposal before it enters its summer recess on August 7, 2026.

On the monetary policy front, Ibrahim also sees the possibility of another interest rate hike by the U.S. Federal Reserve. The main driver is rising oil prices, which have fueled inflationary pressures in the United States. He noted that several Federal Reserve officials are currently advocating a 25-basis-point rate hike as global crude oil prices continue to create volatility across financial markets.

“At the upcoming meeting in August, inflation is likely to remain elevated, and the U.S. central bank will consider raising interest rates,” he said.