{"id":65840,"date":"2026-08-02T19:08:16","date_gmt":"2026-08-02T23:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-plunge-6-as-trump-halts-iran-strike-us-japan-execute-historic-yen-intervention\/65840\/"},"modified":"2026-08-02T19:08:16","modified_gmt":"2026-08-02T23:08:16","slug":"oil-prices-plunge-6-as-trump-halts-iran-strike-us-japan-execute-historic-yen-intervention","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-plunge-6-as-trump-halts-iran-strike-us-japan-execute-historic-yen-intervention\/65840\/","title":{"rendered":"Oil Prices Plunge 6% as Trump Halts Iran Strike; US-Japan Execute Historic Yen Intervention"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Global <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> crashed more than 6%<\/strong> after President Donald Trump announced the cancellation of a massive planned military strike on Iran, opting instead to pursue a rapid diplomatic nuclear deal.<\/li>\n<li><strong>The U.S. and Japan conducted a rare joint currency intervention<\/strong>, the first in 15 years, to support the Japanese yen after it hit 40-year lows; the yen strengthened to <strong>157.02 per dollar<\/strong>.<\/li>\n<li><strong>U.S. equity futures rallied<\/strong> on the de-escalation of Middle East tensions, with <strong>Nasdaq futures rising 0.6%<\/strong> and <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> futures gaining 0.4%<\/strong>.<\/li>\n<li><strong>Treasury futures surged<\/strong> as falling energy prices cooled inflation fears, with <strong>10-year notes rising 13 ticks<\/strong> and <strong>30-year bonds jumping 22 ticks<\/strong>.<\/li>\n<li><strong>New Zealand building permits fell 3.6% in June<\/strong>, marking a second consecutive monthly decline and signaling continued cooling in the nation&#39;s construction sector.<\/li>\n<\/ul>\n<h2>Geopolitical Shift Triggers Energy Sell-Off<\/h2>\n<p>Energy markets experienced a sharp correction late Sunday after President Donald Trump confirmed via social media that he had called off a &quot;locked and loaded&quot; strike against Iranian infrastructure. The decision followed requests from regional allies, including Saudi Arabia, to prioritize a &quot;rough framework&quot; for a peace deal. The proposed agreement reportedly includes the <strong>immediate reopening of the Strait of Hormuz<\/strong> and a halt to Iran&#39;s nuclear program in exchange for the lifting of U.S. naval blockades.<\/p>\n<p><em>Crude oil futures reacted violently to the news<\/em>, with Brent crude dropping over <strong>$5.50 to approximately $82.41 per barrel<\/strong>. Market participants noted that the &quot;geopolitical risk premium,&quot; which had recently pushed prices toward the $100 mark, evaporated almost instantly as the threat of a full-scale regional war receded. Despite the optimism, Iran\u2019s defense ministry described the U.S. announcement as &quot;psychological warfare,&quot; maintaining a high state of military alert.<\/p>\n<h2>Historic US-Japan Coordination Supports Yen<\/h2>\n<p>In a significant shift in foreign exchange policy, the U.S. Treasury and the Japanese Finance Ministry executed a <strong>coordinated intervention<\/strong> to arrest the yen&#39;s slide. The yen, which had recently plummeted to its weakest levels since 1986, surged as authorities reportedly purchased between <strong>$5 billion and $10 billion<\/strong> in JPY. President Trump defended the move, stating the U.S. is &quot;always there&quot; for Japan and citing a &quot;financial benefit&quot; from the arrangement, likely referring to the stabilization of U.S. Treasury markets.<\/p>\n<p><em>The USD\/JPY pair fell 0.2% to 157.02<\/em>, providing much-needed relief for Japanese policymakers struggling with import-driven inflation. Analysts at Brown Brothers Harriman noted that joint interventions historically &quot;pack a punch,&quot; suggesting that speculators should avoid betting against the official flow. The intervention comes as Treasury Secretary <strong>Scott Bessent<\/strong> (<a href=\"\/stock\/TLT\">TLT<\/a>) seeks to prevent Japanese sell-offs of U.S. debt, which could otherwise spike American borrowing costs.<\/p>\n<h2>Maritime Tensions Persist Despite Diplomatic Hopes<\/h2>\n<p>While diplomatic efforts dominate the headlines, security risks in the Gulf of Oman remain elevated. The <strong>UKMTO<\/strong> reported an explosion in close proximity to a tanker 20 nautical miles northeast of Khasab, Oman. Although the crew and vessel were reported safe, the incident follows a separate report of a tanker being struck by an &quot;unknown projectile&quot; near Lima, Oman, which damaged its engine room. These events underscore the fragility of the current &quot;truce&quot; and the ongoing risks to global energy transit.<\/p>\n<h2>New Zealand Construction Slowdown Deepens<\/h2>\n<p>On the economic data front, <strong>Statistics New Zealand<\/strong> reported that building permits fell <strong>3.6% month-over-month in June<\/strong>. This follows a revised <strong>4.9% drop in May<\/strong>, indicating a sustained downturn in residential construction demand. While the annual number of new dwellings consented is up <strong>19% year-over-year<\/strong> at 40,581 units, the monthly trend suggests that high interest rates and rising costs are beginning to weigh heavily on future project commencements.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Global oil prices crashed more than 6% after President Donald Trump announced the cancellation of a massive planned 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