Oil prices fell 1% on Monday after the US and Iran pledged to continue nuclear talks, easing fears of immediate conflict in the Middle East. Brent crude dropped 67 cents to $67.38 a barrel, while US West Texas Intermediate fell 61 cents to $62.94 a barrel.
Investors were reassured as both countries described their discussions in Oman as positive, despite ongoing differences. Analysts said the pledge reduced fears of supply disruptions in the region, which could have pushed prices higher.
Read more: Oil prices fall 2% as fears of potential supply disruptions ease
Last week, both Brent and WTI crude fell more than 2%, marking the first decline in seven weeks. Market watchers said volatility remains high due to conflicting statements and the potential for renewed tensions.
Iran’s foreign minister warned Tehran would strike US bases if attacked, keeping the risk of conflict alive. At the same time, efforts to curb Russia’s oil exports continue, with India reducing purchases and the European Commission proposing restrictions on services supporting Russian crude.
Read more: Oil holds near six-month high amid US–Iran tensions
Analysts noted oil markets will remain sensitive to global supply shifts, Middle East tensions, and changes in Russian export flows. Any negative headlines could quickly reignite risk premiums and impact prices in the coming days.