Global oil prices fell on Monday after United States (US) and Iran talks concluded in Switzerland with Tehran saying it had secured waivers for oil and petrochemical exports, easing worries about a supply shortage in global markets.
Brent crude was down $1.35 at $79.22 a barrel. Prices had climbed to $82.30 at the start of trading because of threats from US President Donald Trump to restart the war on Iran, as well as an announcement from Tehran that it had again closed the Strait of Hormuz.
US West Texas Intermediate crude futures were at $77.00 a barrel, up 40 cents, ahead of the contract’s expiry later on Monday. The more-active August contract lost 56 cents to $75.29 a barrel.
“Progress between the US and Iran in the talks in Switzerland is likely the main factor weighing on oil prices today,” UBS analyst Giovanni Staunovo said.
High-ranking US and Iranian officials wrapped up their first round of talks in Switzerland on Monday, mediators said.
The discussions began on Sunday under the terms of a memorandum of understanding reached last week to extend a tenuous ceasefire from April for at least another 60 days.
Iranian Foreign Minister Abbas Araqchi said his country had secured waivers for oil and petrochemical exports, the release of some frozen assets, and the launch of a reconstruction and development plan for Iran.
–Reuters–
