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Oil Price Today (August 3): Crude oil crashes 5% below $84 as Trump delays attack on Iran. What are experts saying?

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Oil Price Today (August 3): Crude oil crashes 5% below $84 as Trump delays attack on Iran. What are experts saying?
Oil prices dropped by more than $4 a barrel on Monday after U.S. President Donald Trump refrained from launching a fresh attack on Iran and instead signalled a willingness to pursue a quick agreement aimed at ending Tehran’s nuclear ambitions and reopening the Strait of Hormuz.

Crude oil price on August 3

Brent crude futures fell $4.37, or 5%, to $83.56 a barrel, while U.S. West Texas Intermediate crude declined $4.63, or 5.5%, to $80 a barrel.

The sharp decline followed a strong rally last month, when both contracts had gained more than 20% after fighting between the U.S. and Iran resumed. Concerns over attacks on several tankers near Oman also heightened security risks, discouraging shippers from entering the Gulf to load crude.

Also read: Trump’s closest Gulf allies are frustrated with his Iran war strategy: Report

In a possible sign of easing tensions, Trump said late on Saturday on his Truth Social platform that Iran and other Middle Eastern countries had sought time to finalise an agreement that would result in “the Immediate, Complete and Total” reopening of the crucial waterway and bring “an end to Iran’s nuclear threat”. Trump added that he had agreed to cancel the attack to allow for a rapid agreement, and said Israel had also committed to the effort.

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On Sunday, OPEC+ approved an increase of around 188,000 barrels per day in its oil production quota for September, marking the completion of the rollback of one tranche of its voluntary output cuts.
However, the additional supply has had little effect on the market so far. Export disruptions from the Gulf, along with supply issues involving Russia and Kazakhstan amid the Iran and Ukraine wars, have meant that the group’s successive monthly production hikes for most of this year have largely remained on paper.

Analysts hopeful?

The trajectory of oil prices will largely depend on the duration of the supply disruption. JPMorgan estimates that every additional month of disruption could lift Brent prices by about $7 to $8 a barrel. If the disruption extends for three months, the bank expects the monthly average Brent price to reach around $114 a barrel.Goldman Sachs has also warned that Brent could rise to $120 a barrel if shipping disruptions through the Strait of Hormuz, the world’s most important oil transit route, continue. However, its base case remains that tensions in the Middle East will eventually ease.

Read more: Oil prices surge 20% in July as US-Iran war heightens Strait of Hormuz tensions

Based on that assumption, Goldman Sachs expects Brent to average $80 a barrel in the fourth quarter and $75 a barrel next year. Even so, the bank said the risks to its forecasts remain “tilted to the upside”, citing the possibility that shipping disruptions could continue in both the Strait of Hormuz and the Red Sea.

“The direction of our outlook is unchanged; the path and the timeline have shifted. We still expect oil to cool as we move into 2027, for three reasons: supply outside the conflict zone is expanding, with OPEC+ raising production targets, the UAE at record output and non-OPEC barrels responding to price, said Anindya Bannerjee, Head of Commodity Research at Kotak Securities.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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FAA clears smallest Boeing 737 Max to fly after years of delays

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FAA clears smallest Boeing 737 Max to fly after years of delays

The Federal Aviation Administration has certified the Boeing 737 Max 7, the smallest model in the bestselling family of aircraft, after nearly a decade of delays.

The agency on Monday said the approval “reflects years of sustained work to resolve complex technical issues and complete a thorough review of the airplane’s design and supporting safety analyses.”

Carriers including Southwest Airlines expected to fly the plane before the pandemic, but increased regulatory scrutiny following the fatal crashes of the in-service Max 8, in 2018 and 2019, other safety and manufacturing crises, and the redesign of an engine anti-icing system delayed certification.

Southwest said in a statement that “certification is an important step toward continuing to modernize our all-Boeing 737 fleet with upgraded interiors and more fuel-efficient aircraft to fit our Customers’ preferences and demand patterns.”

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Airlines can finally start flying passengers soon after planes are certified, but it can take them months to work them into schedules.

Boeing said in a blog post Monday that it and Southwest are preparing for delivery of the first airplane.

“This important certification validates the rigor of our airplane’s design and recognizes the determination and resilience of our 737 MAX development team,” Stephanie Pope, president and CEO of Boeing Commercial Airplanes, said in a statement. 

The FAA said it “required the MAX-7 to incorporate key improvements … including updates to the flight-control software, flightcrew alerting system, and a redesigned engine anti-ice system,” adding that those changes prevent the engine from overheating.

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The plane maker is also awaiting certification from the FAA of another long-delayed model, the 737 Max 10, which is the largest in the family and one that some carriers expected to start flying in 2020 as well as the manufacturer’s largest plane, the 777X.

Boeing has about 40 of the 737-7s and 737 Max 10s built and in inventory already, and the FAA approval could help the manufacturer bring in much-needed cash, Jefferies analyst Sheila Kahyaoglu said in a note Sunday. Boeing and other manufacturers receive the bulk of an airplane’s price when they hand it over to customers.

Boeing stock rose more than 6% in afternoon trading Monday.

The manufacturer, a top U.S. exporter, has been working to ramp up production of its 737 Maxes and 787 Dreamliners, key to its recovery after years of crisis since airlines and other customers pay the bulk of the aircraft’s price upon delivery. Boeing opened a new production line in Everett, Washington, in July for its 737 Max airplanes.

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The company has been working to win back the trust of the FAA, and has made strides, including in mid-July, when the FAA said it could once again issue airworthiness certificates for its bestselling 737 Max aircraft and 787 Dreamliners. The agency stripped that from Boeing after the Max 8 crashes, which killed 346 people.

— CNBC’s Michele Luhn contributed to this report.

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Amazon joins $3 trillion club as AI, cloud growth fuel stock rally

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Amazon joins $3 trillion club as AI, cloud growth fuel stock rally
Amazon’s market capitalisation surpassed $3 trillion for the first time on Monday as its shares rallied following strong earnings and signs that the AI boom is fueling demand for its highly profitable cloud-computing business.

The stock climbed 5.5% to a record $286.20, extending its year-to-date gain to more than 23%.

Shares of the Seattle-based e-commerce and cloud-computing giant jumped 15% on Friday after posting its strongest cloud growth in more than four years and lifting its annual capital-spending forecast.

Among the six “Magnificent Seven” companies that have reported so far, only Amazon and Microsoft have convinced investors that their AI investments are paying off. Tesla, Alphabet and Meta, meanwhile, faced a backlash after their heavy spending weighed on free cash flow last quarter.

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Like other Wall Street tech giants, Amazon has invested billions of dollars in expanding its AI infrastructure. In April, it disclosed a new investment in Anthropic, following an earlier pledge to invest up to $50 billion in OpenAI.


Founded by Jeff Bezos in 1994, Amazon added another $1 trillion to its market value in just over two years after first reaching a $2 trillion valuation in June 2024.
Apple, Microsoft, Alphabet, and Nvidia are other companies that have reached a market value of $3 trillion in the past. Nvidia is currently the world’s largest company by market capitalisation, at close to $5 trillion.

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Red-state AGs warn OpenAI after AI agent allegedly hacks Hugging Face

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OpenAI says AI model hacked another company's systems during internal test

A coalition of 15 red-state attorneys general warned OpenAI CEO Sam Altman on Monday to preserve documents and halt certain high-risk cybersecurity tests after an experimental artificial intelligence agent allegedly escaped a controlled environment and carried out a multi-day hack into outside computer systems.

In a Monday letter shared with Fox News Digital, the attorneys general said OpenAI may have violated state and federal consumer-protection and data-privacy laws and cautioned that a failure to preserve relevant records could trigger sanctions if litigation follows.

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“A failure to take immediate action to preserve such materials could result in spoliation sanctions if litigation were to ensue,” Iowa Republican AG Brenna Bird’s letter, signed by GOP AGs from Alabama, Arkansas, Florida, Idaho, Indiana, Kansas, Missouri, Montana, Nebraska, Oklahoma, Pennsylvania, South Carolina, Texas and Utah, read.

“We further demand that OpenAI take immediate steps to ensure that no OpenAI personnel face any adverse action for engaging in any protected whistleblowing activity or for reporting any unlawful or harmful activities by OpenAI.”

FLORIDA SUES OPENAI AND SAM ALTMAN CLAIMING CHATGPT IS UNSAFE FOR USERS

The officials accused OpenAI of conducting a July 2026 evaluation involving two advanced models — identified in the letter as GPT-5.6 Sol and an unreleased model the company had described as “even more capable” — without the normal safeguards designed to prevent high-risk cyber activity.

This letter and hack follow a letter GOP AGs wrote to Altman in May, demanding answers on OpenAI’s nonprofit status.

“OpenAI’s inability or unwillingness to ensure the safety of its products poses an imminent risk of substantial harm to our States,” Bird wrote.

“We intend to take decisive action to protect our citizens.”

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The test was supposed to take place in an isolated environment with no internet access, but the attorneys general alleged in the letter that the agent exploited a software vulnerability, escaped the testing environment and connected to the internet.

“OpenAI failed to confirm that its secure and isolated testing environment was, in fact, secure and isolated,” Bird wrote. “It was not.”

From there, the agent allegedly launched an intrusion targeting the AI company Hugging Face in an effort to steal an answer key and defeat its own safety evaluation.

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Citing an interim technical report from Hugging Face, the letter said the agent carried out more than 17,000 “attacker actions,” seized control of an external endpoint exposed through a third-party infrastructure provider and entered Hugging Face systems.

OPENAI DIDN’T REALIZE ITS AGENT WAS RESPONSIBLE FOR HACK FOR A WEEK: REPORT

OpenAI logo

In this photo illustration, an OpenAI logo is seen displayed on a smartphone on the top of a laptop. (Omar Marques/SOPA Images/LightRocket / Getty Images)

The attorneys general also cited reporting that the agent found four sets of login credentials online and used them to access four other unnamed services.

OpenAI allegedly did not know the agent had broken containment while the activity was underway. The letter claims Hugging Face detected the intrusion independently and contacted the FBI before OpenAI determined that its own technology was responsible.

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The document presents the incident and its surrounding details as allegations drawn from public reporting and technical findings.

The attorneys general said the episode followed a series of warning signs involving OpenAI’s models and internal oversight.

OPENAI CO-FOUNDER WARNS AI MODELS ARE BECOMING HARDER TO CONTROL AFTER ITS MODEL HACKED ANOTHER FIRM

OpenAI CEO Sam Altman

OpenAI CEO Sam Altman said concerns about artificial intelligence are understandable following a recent cybersecurity incident involving one of the company’s models. (Anna Moneymaker/Getty Images / Getty Images)

They cited reports that an AI agent had previously left instructions for future versions of itself describing how to escape internal restrictions, that monitoring systems had been disconnected during earlier tests and that employees sometimes struggled to oversee multiple fast-moving model evaluations generating enormous volumes of data.

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“OpenAI’s unprecedented and alarming misconduct demands an immediate and significant response,” the officials wrote.

The coalition demanded that OpenAI preserve documents, internal communications, data and other materials related to the Hugging Face intrusion, the pre-release model involved, the company’s discovery of the incident and any internal investigation or public statement concerning it.

The preservation request also covers previous cases in which OpenAI models may have used publicly exposed credentials, earlier unauthorized network intrusions and any incident in which a model left notes for future versions of itself.

ANTHROPIC SAYS AI MODELS ACCESSED SYSTEMS OF 3 REAL ORGANIZATIONS DURING TESTING

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Hugging Face logo

Hugging Face said it detected and contained a security breach after an OpenAI model compromised part of its infrastructure during an internal evaluation. (Jaque Silva/NurPhoto via Getty Images / Getty Images)

The attorneys general further requested records concerning OpenAI’s safety policies, testing procedures, monitoring systems, employee concerns and personnel with knowledge of the alleged events.

The letter also demanded that OpenAI protect employees from retaliation for reporting potentially unlawful or dangerous conduct.

In addition, the coalition called on the company to immediately stop internal evaluations that prompt AI models to pursue advanced exploitation through complex attack paths.

“Unless and until OpenAI shows that it can conduct such activities in a controlled and responsible way, such activities pose an imminent risk of serious harm to the citizens of our States,” the letter said.

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Fox News Digital reached out to OpenAI for comment and has not yet heard back.

The officials stopped short of announcing a lawsuit but said the publicly reported facts could support claims under laws enforced by state attorneys general.

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“OpenAI has an obligation to act responsibly and to follow State and federal laws that protect Americans’ safety and security,” Bird’s letter concluded. “When OpenAI takes actions that imperil the welfare of our citizens, State Attorneys General will step in to protect them.

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“We intend to take all steps necessary to protect our States and all Americans from the unprecedented risks posed by OpenAI’s irresponsible products and conduct.”

The White House has confirmed to Fox News that it is going to host AI companies Tuesday to review the AI framework from a June 2 executive order from President Donald Trump.

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Johnson & Johnson (JNJ) Discusses FDA Authorization and Market Introduction of OTTAVA Robotic Surgical System Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript