Brent crude prices fell on Monday after U.S.-Iran talks in Switzerland ended with Iran announcing it had secured waivers for oil and petrochemical exports, raising expectations of increased Iranian oil supplies and easing concerns about global shortages. Brent dropped 1.5% to around $79.4 per barrel, as reported by Reuters.
The talks, aimed at extending a fragile ceasefire, also reportedly resulted in the release of some frozen Iranian assets and plans for Iran’s reconstruction. Analysts said a potential easing of sanctions could return up to 1.5 million barrels per day of Iranian crude to global markets.
Despite ongoing geopolitical risks, including tensions around the Strait of Hormuz and renewed violence in Lebanon, oil prices have declined more than 8% over the past week on expectations of higher supply from Iran and other Persian Gulf producers. Iraq, the UAE, and Kuwait have also indicated plans to increase oil exports and production.