Oil Tumbles 7% as Trump Says US-Iran Deal Possible

Gold held near $4,075 an ounce in early trading Tuesday after gaining 0.6% on Monday. The metal has stayed above the $4,000 mark since late June, supported by investors buying on price declines. It has fallen more than 20% since the conflict began, as inflation worries and expectations of higher interest rates gave way to a stronger dollar and shifting risk appetite.

Israeli Prime Minister Benjamin Netanyahu arrived in Washington on Monday for what will be his eighth face-to-face meeting with Trump. Iran sits at the top of the agenda. Before leaving, Netanyahu posted on X that his goal was to ensure Israel's security and expand the circle of peace, adding that Iran would be discussed "first and foremost." The meetings are expected to cover military cooperation, the trajectory of the US-Iran dialogue, and broader regional security. No joint statement has been scheduled.

Trump also clarified the US stance on the separate fighting between Saudi Arabia and Yemen's Houthis. He told reporters aboard Air Force One that Washington is "not involved with that" right now, though he left the door open for future intervention "if there's a problem." The US is currently focused on nuclear negotiations with Saudi Arabia.

Crude has been whipsawed this month. Prices initially surged as the war spread to the Red Sea, disrupting tanker traffic, then slumped in recent days as diplomatic channels reopened. Traders remain cautious. Tanker traffic through the Strait of Hormuz has yet to normalize, several said. The next marker for markets is whether the US-Iran dialogue produces a framework for de-escalation before the end of the week.