Oil slides and shares hit records after US calls off Iran strikes

What happened

• Germany's Dax passed its early-July record of 25,900.10 points, rising up to 1.5 percent to 26,010.56 on Monday.
• Brent for October delivery fell as much as 7.3 percent to $81.55 a barrel; WTI dropped over 5 percent to $79.47.
• Trump wrote late on Saturday that Iran and other states had asked for time to complete a Hormuz reopening deal.
• Ten-year US Treasury yields eased to 4.68 percent (Guardian) or 4.69 percent (FAZ), off last week's January high.
• Both oil benchmarks had gained more than 20 percent in July, after tanker attacks near the Strait of Hormuz.

The view from outside

Outlets outside the conflict point to a lag in the real economy: the RAC told the Guardian that UK petrol hit an Iran-war high of 160.85 pence a litre on Monday and diesel passed 180 pence for the first time since 9 June. The Hindu reports Indian markets up 1.6 percent on the same news.

What could happen next

• No confirmed date or venue for US-Iran talks after Tehran denied that negotiations would begin on Monday.
• The UK Maritime Trade Operations Centre reported three further tanker attacks since Saturday; Hormuz traffic has slowed.
• OPEC+ agreed on Sunday to raise output, adding supply pressure independent of any diplomatic outcome.
• The Wall Street Journal reports oil falling again on Tuesday on prospects of the strait reopening.