Crude Oil Prices Fall Up To 3% As US-Iran Talks Ease Supply Concerns

Global crude oil prices recorded a significant decline of up to 3 per cent on Monday after diplomatic talks between the United States and Iran in Switzerland helped ease concerns over potential supply disruptions and raised expectations of increased Iranian oil exports.

International benchmark Brent crude dropped more than 2 per cent to around $79 per barrel after briefly climbing above $82 at the start of trading.

US West Texas Intermediate (WTI) crude traded near $75 per barrel, reflecting a decline of approximately 3 per cent.

Iran and the United States completed the first round of talks in Switzerland, aiming to extend a fragile ceasefire and ease regional tensions.

The discussions boosted hopes for greater stability in global energy markets.

Oil prices had already fallen more than 8 per cent last week as traders anticipated the release of delayed Gulf cargoes and the possible easing of restrictions on Iranian oil exports.

Iranian Foreign Minister Abbas Araqchi said Tehran secured waivers for oil and petrochemical exports, access to some frozen assets and support for a reconstruction and development programme.

These developments have strengthened market expectations of additional crude supplies entering the global market in the coming months.

Analysts said Brent crude staying below $80 per barrel despite uncertainty in West Asia suggests investors are not expecting a major escalation in tensions, though they continue to monitor developments closely.

Lower oil prices also lifted equity markets, with benchmark indices trading higher.

The decline is expected to benefit oil-importing countries by reducing import costs, easing inflation and narrowing current account deficits, highlighting the impact of geopolitical developments on global energy markets.

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