Oil prices fell after the conclusion of US-Iran talks in Switzerland, where Iran announced "major progress" towards a peace deal within two months. Brent crude prices slid by $1.19, or 1.48%, to $79.38 a barrel by 0416 GMT, after initially climbing to $82.30. Similarly, West Texas Intermediate (WTI) futures traded 1.2% lower near $75.50. This decline was attributed to Iran's foreign minister, Abbas Araqchi, stating that Tehran secured waivers for oil and petrochemical exports, the release of frozen assets, and the launch of a reconstruction plan. These developments have eased worries about a supply shortage in global markets, as the potential return of nearly 1.5 million barrels per day of Iranian crude would significantly improve supply availability.
The talks, which began in the Swiss resort of Bürgenstock, followed an interim agreement last week that extended a ceasefire and led to Iran reopening the Strait of Hormuz. The reopening was particularly significant as shipping data showed a sharp fall in traffic on Sunday after Iran had announced its re-closure, citing violations of the interim peace deal. Over 25 million barrels of Iranian oil had already passed through the virtual blockade line since Monday.
US Vice President JD Vance also acknowledged "great progress" in the discussions. Mediators Qatar and Pakistan further confirmed that a High-Level Committee agreed upon a roadmap for a final deal within 60 days, establishing the foundation for immediate technical talks. An Iranian Foreign Ministry spokesperson confirmed a formal transit mechanism was successfully arranged for the safe passage of commercial vessels through the Strait of Hormuz. Analysts from ING noted the challenges in reaching a permanent deal, but the current progress mitigated immediate supply fears. With the 20-day Exponential Moving Average (EMA) at roughly $84.05 acting as resistance, a sustained recovery would require reclaiming this level, while support near $72.79 could see prices return to pre-war levels around $67.20.
