Oil prices fall as US-Iran talks ease supply concerns

Oil prices inched lower on Monday, as supply concerns eased after reports that restrictions on Iranian oil exports had been lifted and the US naval blockade was ended following talks between the United States and Iran.

International benchmark Brent crude traded at $78.79 per barrel at 9.53 a.m. local time (0653 GMT), down around 1.6% from the previous close of $80.05.

US benchmark West Texas Intermediate (WTI) fell 0.6% to $75.39 per barrel, compared with $75.85 in the previous session.

Diplomatic contacts between the US and Iran, aimed at reaching a final agreement that would permanently reduce geopolitical tensions in the Middle East, are continuing in Switzerland under the mediation of Pakistan and Qatar.

Iranian Foreign Minister Abbas Araghchi said on X after the first round of talks that progress had been made toward ending the war in Lebanon through mediation by Pakistan and Qatar.

Araghchi announced that restrictions on Iran’s oil exports had been lifted, the US naval blockade had come to an end, and part of the country’s frozen assets had been released.

In a joint statement, the foreign ministries of Qatar and Pakistan said the first round of the four-party talks involving the two sides and the mediating countries had concluded in a positive and constructive atmosphere.

The statement also said the parties had established a communication channel to prevent misunderstandings and ensure the safe passage of commercial vessels through the Strait of Hormuz.

• International benchmark Brent crude
• Iranian Foreign Minister Abbas Araghchi
• US benchmark West Texas Intermediate (WTI)