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Oil prices slipped about 1% on Monday as near-term fears of a Middle East conflict eased after the United States and Iran agreed to continue talks on Tehran’s nuclear programme, calming concerns over potential supply disruptions.
Brent crude futures fell 67 cents, or 1%, to $67.38 a barrel by 04:44 GMT, while U.S. West Texas Intermediate crude dropped 61 cents, or 1%, to $62.94 a barrel.
The pullback followed indirect talks between Iran and the U.S. in Oman on Friday, which both sides described as positive despite unresolved differences. The agreement to keep negotiating reduced investor anxiety that a collapse in diplomacy could push the region closer to war, particularly after Washington recently bolstered its military presence in the Middle East.
About a fifth of the world’s oil consumption flows through the Strait of Hormuz between Oman and Iran, making any escalation in the region a major risk to global supply. Both Brent and WTI fell more than 2% last week on easing tensions, marking their first weekly decline in seven weeks.
Still, risks remain elevated. Iran’s foreign minister warned on Saturday that Tehran would strike U.S. bases in the Middle East if attacked, underlining that the threat of conflict has not disappeared.
Beyond the Middle East, markets are also focused on efforts to curb Russian oil revenues. The European Commission on Friday proposed a broad ban on services supporting Russia’s seaborne crude exports. Meanwhile, Indian refiners — once among the largest buyers of Russian seaborne oil — are reportedly avoiding April cargoes and may stay on the sidelines longer, a move that could help New Delhi advance a trade agreement with Washington.
