Oil prices slipped around 1% on Monday as progress in nuclear negotiations between the United States and Iran eased concerns about potential supply disruptions from the major Middle Eastern oil producer.
Brent crude futures dropped by 70 cents, or 1.03%, to $67.26 a barrel as of 0030 GMT, following a 3.2% gain on Thursday. Meanwhile, U.S. West Texas Intermediate (WTI) crude fell by 68 cents, or 1.05%, to $64 a barrel, after rising 3.54% in the previous session. It’s worth noting that Thursday was the last settlement day of the week due to the Good Friday holiday.
On Saturday, Iran’s foreign minister announced that Tehran and Washington had agreed to start drafting a framework for a potential nuclear agreement, with a U.S. official describing the talks as having made “very good progress.”
This diplomatic momentum comes shortly after Washington imposed additional sanctions, including measures targeting a China-based teapot refinery accused of processing Iranian crude. The move adds further pressure on Iran amid ongoing negotiations. (“Teapot” refers to smaller, independent refineries in the industry.)
Last week, optimism over a possible U.S.-EU trade agreement and worries about tighter Iranian oil supply drove both Brent and WTI up by about 5%—marking their first weekly gains in three weeks.
In parallel geopolitical developments, Russia and Ukraine accused each other on Sunday of violating a one-day Easter ceasefire announced by President Vladimir Putin. Both sides reported hundreds of ceasefire breaches, while the Kremlin confirmed no plans to extend the truce.