Brent crude oil prices fell following talks between the U.S. and Iran in Switzerland
Global prices for Brent crude fell following the conclusion of talks between the U.S. and Iran in Switzerland, during which Tehran announced that it had secured exemptions for the export of oil and petrochemical products. This eased market concerns about a potential supply shortage.
The price of Brent crude oil fell by $1.19 (1.48%) to $79.38 per barrel.
At the start of trading, prices rose to $82.30 per barrel, driven by geopolitical risks and reports of tensions surrounding the negotiation process.
Meanwhile, futures for U.S. WTI (West Texas Intermediate) crude were trading at $76.73 per barrel, up 13 cents from the previous close.
Analysts attribute the decline in oil prices to improved expectations for a diplomatic resolution between the U.S. and Iran.
“The drop (in Brent prices—ed.) was mainly driven by improved prospects for a diplomatic breakthrough between the United States and Iran and renewed hopes that sanctions against Iran may eventually be eased,” said Sugandha Sachdeva, founder of the research agency SS WealthStreet.
According to intermediaries, high-ranking officials from the U.S. and Iran have concluded the first round of talks in Switzerland. The negotiations began in accordance with the agreements on a 60-day ceasefire.
Iranian Foreign Minister Abbas Araghchi stated that Tehran had secured exemptions for oil and petrochemical exports, the unfreezing of some assets, and the launch of a plan for the country’s recovery and development.
Analysts note that Iran’s return to the market could add up to 1.5 million barrels of oil per day, which could significantly affect the balance of supply and demand.
Following the conclusion of the negotiations, a number of countries, including the UAE, Kuwait, and Iraq, have already announced their readiness to increase oil supplies.
At the same time, Iraq plans to gradually increase production to 4.2–4.3 million barrels per day, which could also boost supply on the global market.
Prior to the negotiations, market tensions rose due to reports of shipping restrictions in the Strait of Hormuz, which is traditionally a key oil supply route.
Analysts warn that the situation remains unstable, and the risks of the conflict escalating persist even within the framework of temporary agreements.
This was reported by Reuters.
Global oil prices fell sharply on Thursday, June 19, amid reports of an agreement between the U.S. and Iran. Brent futures fell to $77.96 per barrel, and WTI futures to $74.96, the lowest level since late February.
The U.S. and Iran will create a $300 billion fund to revive the economy — Reuters.
Peace on Tehran’s Terms: Why the Deal with Iran Looks More Like a U.S. Capitulation.
