Oil Prices Fall as US-Iran Talks Ease Supply Concerns

Global oil prices declined on Monday after signs of progress in talks between the United States and Iran eased concerns over possible supply disruptions in the Middle East.

Brent crude fell more than 2% to below $79 per barrel, while U.S. West Texas Intermediate crude also recorded losses as investors responded to the diplomatic signals.

U.S. Vice President JD Vance said discussions with Iran had made progress and confirmed that the Strait of Hormuz remained open for maritime traffic.

The talks were held in Switzerland and marked the first direct high-level engagement between U.S. and Iranian officials under a renewed ceasefire framework aimed at reducing regional tensions.

Iranian Foreign Minister Abbas Araghchi said Tehran had secured waivers allowing the resumption of oil and petrochemical exports, access to some frozen assets, and support for reconstruction efforts.

Reuters reported that expectations of additional supply from Iraq, Kuwait and the United Arab Emirates also added pressure on prices, as producers sought to reassure markets over energy flows.

Tankers carrying nearly two million barrels of crude oil passed through the Strait of Hormuz after earlier disruptions, according to the report.

It was not immediately clear how quickly regional production and logistics networks would fully recover.

SOURCE: Reuters