Brent Crude Falls Below $80 as US-Iran Negotiations Advance

PUKMEDIA

Oil prices.

Oil prices declined on Monday after high-level talks between the United States and Iran concluded in Switzerland, with Tehran announcing that it had secured exemptions for its oil and petrochemical exports, easing concerns over potential supply disruptions in global markets.

By 06:56 GMT, Brent crude futures had fallen by $1.53, or 1.9 per cent, to $79.04 per barrel.

US West Texas Intermediate (WTI) crude futures settled at $76.53 per barrel, down 7 cents, ahead of the contract’s expiry later on Monday. The more actively traded August contract also fell by 55 cents to $75.30 per barrel. No settlement was recorded in the US market on Friday due to a public holiday.

Prices had initially climbed to $82.30 at the opening of trading, driven by tensions surrounding the start of the negotiations. US President Donald Trump had threatened to resume military action against Iran, while Tehran announced that it had once again closed the Strait of Hormuz.

Tony Sycamore, a market analyst at ING, said: “Weekend talks between the United States and Iran in Switzerland appear to have produced some progress, with both sides agreeing to establish a high-level committee.”

However, he cautioned that it remained unclear whether these diplomatic efforts would lead to concrete outcomes on the ground, particularly in southern Lebanon, where both Israel and Hezbollah appear determined to continue hostilities.

In a research note, ING analysts said: “Recent developments indicate that reaching a more durable agreement will be difficult, with a genuine risk that fighting could resume during the 60-day ceasefire period.”

Despite those concerns, oil prices fell by more than 8 per cent last week amid expectations of increased supply, driven by the release of oil shipments stranded in the Gulf and the prospect of US sanctions on Iranian oil being eased under a future US-Iran agreement.


PUKMEDIA