Oil Prices Fall 6% as U.S.-Iran Peace Talks Gain Ground
Oil Prices Fall 6% as U.S.-Iran Peace Talks Gain Ground Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.
Oil prices were sharply lower on Monday followingcommentsby President Donald Trump that diplomatic negotiations with Iran are advancing, easing market fears of severe energy supply disruptions due to the Middle East conflict.
Brent crude for July deliveryfell5.9% to trade at $97.44 per barrel at 7.45 am ET in Monday’s early morning session, slipping below the $100-per-barrel mark for the first time in nearly three weeks while the corresponding WTI contract fell by a similar margin to trade at $90.99/bbl.
Easing inflation and supply concerns prompted a global stock market rally, with Japan’s Nikkei reaching a record high and U.S.
Markets reacted to tentative progress in U.S.-Iran diplomatic talks.
Tracking data shows de-escalation movements, such as Chinese tankers shifting out of the high-tension zone, while earlier IEA strategic petroleum reserves are being tapped at a record clip to cushion the market.
However, both Washington and Tehran have downplayed expectations for an immediate peace agreement to end their three-month-old war, backing away from claims of an imminent breakthrough.
Trump recently revealed that he has instructed negotiators not to rush the process, asserting that the U.S.
naval blockade on Iranian ports will remain in full effect until a finalized accord is certified and signed.
Secretary of State Marco Rubio has affirmed that Washington will exhaust diplomatic channels; however, he has warned that the U.S.
will handle Iran in “another way” if a good agreement cannot be secured, hinting at a potential return to active war.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei has clarified that while a 14-point framework has been reached, it does not mean they are close to a final signing.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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