Oil prices fell by about 1% on Monday as immediate concerns over a potential Middle East conflict eased following renewed U.S.-Iran nuclear talks over the weekend.
Brent crude futures dropped 67 cents, or 1%, to $67.38 per barrel by 0444 GMT, while U.S. West Texas Intermediate (WTI) crude fell 61 cents, or 1%, to $62.94 per barrel.
Analysts noted that investors’ anxiety over supply disruptions had subsided after both nations pledged to continue indirect nuclear negotiations. “With more talks on the horizon, the immediate fear of supply disruptions in the Middle East has eased quite a bit,” said IG market analyst Tony Sycamore.
The weekend discussions in Oman were described as positive despite remaining differences, alleviating fears that a breakdown could escalate tensions in the region. Such concerns had intensified after the U.S. deployed additional military forces near the Persian Gulf.
The Strait of Hormuz, a key shipping route between Oman and Iran, sees the passage of oil exports equivalent to roughly a fifth of global consumption, making geopolitical stability in the region critical for global energy markets.
Investors will continue monitoring developments in the talks, as any renewed tensions could quickly influence oil prices given the region’s strategic significance.
