Brent Slides as US-Iran Diplomatic Talks Wrap Up in Switzerland
NEW DELHI — Brent crude fell more than 1.4 percent on Monday as US‑Iran talks concluded in Switzerland, with Tehran saying it had secured waivers for oil and petrochemical exports, easing supply concerns in global markets.
Brent dropped $1.19 to $79.38 a barrel by mid‑morning Saudi time. Prices had briefly climbed to $82.30 earlier in the session following a rocky start to the talks, which included threats from President Trump to restart the war and Iran’s announcement it had again closed the Strait of Hormuz. WTI crude traded at $76.73.
“The decline has been driven primarily by improving prospects for a diplomatic breakthrough… reviving hopes that sanctions on Iran could eventually be eased,” said Sugandha Sachdeva, founder of SS WealthStreet.
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 plan. Analysts estimate that nearly 1.5 million barrels per day of Iranian crude could return to international markets.
Before the talks, shipping data showed a sharp drop in vessels passing through the Strait of Hormuz on Sunday after Iran announced it had again closed the waterway, citing Israeli and US violations of the interim deal. Israeli strikes in Lebanon killed at least 20 people on Saturday, underscoring the fragility of the ceasefire.
ING analysts warned that “moving towards a more permanent deal will be challenging, with very real risks of a flare‑up in hostilities during the 60‑day ceasefire.”
Despite the risks, oil prices fell more than 8 percent last week on hopes of more supply from cargoes stranded in the Gulf and potential US sanctions relief. Over 25 million barrels of Iranian oil have passed through the virtual blockade line since Monday, according to Iran’s state oil company. The UAE, Kuwait, and Iraq have also offered more crude to customers in the past week, with Iraq planning to gradually restore output to 4.2‑4.3 million barrels per day.
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