Iran and the US will meet again for talks on Thursday, and oil prices fell as the parties prepared for the talks
Iran and the US will meet for talks again on Thursday. Oil prices fell about 1% on Monday as the US and Iran prepared for a third round of nuclear talks, easing fears of an escalation in conflict. An Iranian official said Tehran was ready to make nuclear concessions if the US met its demands.
Omani Foreign Minister Badr Albusaidi said on Sunday that Iran and the US would hold a third round of nuclear talks in Geneva on Thursday.
Trump said the US would raise its global tariff rate from 10% to 15%, creating uncertainty for global growth and fuel demand.
Brent crude futures fell 87 cents, or 1.21%, to $70.89 a barrel as of 07:22 GMT, while WTI crude futures traded down 85 cents, or 1.28%, at $65.63 a barrel.
Trump said on Saturday that he would raise the temporary tariff on U.S. imports from all countries from 10% to 15%, the maximum level allowed to the President for a limited time under the law, following the U.S. Supreme Court’s decision to overturn the previous tariff program.
The U.S. Customs and Border Protection Agency announced it would halt collection of tariffs under the International Emergency Economic Powers Act on Tuesday at 0501 GMT Eastern Time.
The tariff news over the weekend triggered some risk-aversion flows this morning, seen in gold and U.S. stock futures prices, which is dragging down crude oil prices.
The tariff decision offset concerns about a potential military confrontation between the U.S. and Iran, which had driven Brent and WTI prices up more than 5% last week.
A senior Iranian official stated that Iran has indicated it is willing to make concessions on its nuclear program in exchange for the lifting of sanctions and recognition of its right to enrich uranium.
Brent crude appears to have at least a $10 risk premium per barrel related to Iran, but the threat of attack stemming from the US military buildup in the region hangs over diplomatic efforts, making a significant drop in crude oil prices unlikely.
Unless there is a sharp supply disruption due to geopolitical factors, the global oil market is projected to maintain a supply surplus in 2026. Potential easing of sanctions on Iran and Russia could accelerate long-term oil inventories and pave the way for higher supply, potentially creating a risk of price drops of $5 and $8, respectively, in the fourth quarter of 2026.
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