Oil prices fell sharply on Monday as positive developments in US-Iran nuclear talks and ongoing economic concerns weighed on the market. Brent crude futures declined by nearly 3 percent, down $1.93 to $66.03 a barrel by 1448 GMT. This drop follows a 3.2 percent gain recorded on Thursday, the last trading day of the previous week due to the Good Friday holiday.
Similarly, US West Texas Intermediate (WTI) crude fell by $1.69, or 2.6 percent, to $62.99 a barrel, after rising 3.54 percent in the previous session. The latest losses in oil prices reflect growing optimism around diplomatic negotiations between the United States and Iran, which could potentially ease sanctions and lead to increased oil supply.
According to Iran’s foreign minister, both nations have agreed to start drafting a framework for a potential nuclear agreement. A US official confirmed the progress, stating that the talks are showing “very good progress.” The improved diplomatic climate follows the imposition of new US sanctions last week targeting a Chinese independent refinery accused of processing Iranian crude oil. These sanctions are part of broader efforts by Washington to increase pressure on Tehran while seeking a diplomatic resolution.
Investors are also monitoring broader economic issues, including the impact of tariffs and global demand concerns, which could further reduce fuel consumption. The combination of diplomatic breakthroughs and economic headwinds is contributing to the downward pressure on oil markets, signaling potential volatility ahead for energy prices.
