Oil prices fell on Monday after the United States and Iran concluded talks in Switzerland. Markets reacted positively after Iran announced waivers for oil and petrochemical exports. Consequently, concerns about potential global supply disruptions eased.
Brent crude dropped $1.53, or 1.90 percent, to $79.04 per barrel. Earlier, prices had climbed to $82.30 as trading opened. Investors initially reacted to renewed tensions surrounding the negotiations.
US President Donald Trump warned about restarting the conflict with Iran. Meanwhile, Tehran announced another closure of the Strait of Hormuz.
Markets React to Diplomatic Progress
US West Texas Intermediate crude traded at $76.53 per barrel before the contract expired. Meanwhile, the more active August contract declined 55 cents to $75.30 per barrel. Additionally, the US market remained closed on Friday because of a public holiday.
Senior US and Iranian officials concluded their first round of talks in Switzerland on Monday. The discussions began on Sunday under a memorandum of understanding. Both sides agreed last week to extend a fragile ceasefire for another 60 days.
Iran Announces Export Waivers
Iranian Foreign Minister Abbas Araqchi said Tehran secured important economic concessions during the negotiations. These included waivers for oil and petrochemical exports and access to some frozen assets. He also announced plans to launch a national reconstruction and development programme.
Meanwhile, market analyst Tony Sycamore welcomed the diplomatic progress. He noted both countries agreed to establish a high-level committee. However, he cautioned that lasting stability still depends on developments across the wider Middle East. He added that ongoing tensions between Israel and Hezbollah continue creating uncertainty for regional markets.
