- US and Iran conclude high-level talks in Switzerland: mediators.
- Iran has obtained exemptions for oil and petrochemical exports: Foreign Minister.
- Brent rose earlier after a rocky start to talks.
Oil prices fell on Monday after talks between the United States and Iran concluded in Switzerland and Tehran said it had obtained exemptions for oil and petrochemical exports, easing concerns about a “supply shortage in global markets.”
Brent crude fell $1.53, or 1.90%, to $79.04 a barrel by 0656 GMT. Prices had earlier risen to $82.30 in early trading, boosted by a bumpy start to talks with threats from US President Donald Trump to restart the war against Iran and Tehran’s announcement that it had again closed the Strait of Hormuz.
US West Texas Intermediate crude futures were at $76.53 a barrel, down 7 cents, ahead of the contract expiry later on Monday. The most active August contract fell 55 cents to $75.30 a barrel. There was no agreement in the United States. market on Friday due to a holiday.
Senior U.S. and Iranian officials concluded their first round of talks in Switzerland on Monday, mediators said. Talks began Sunday under the terms of a memorandum of understanding reached last week to extend a tenuous ceasefire since April for at least another 60 days.
Iranian Foreign Minister Abbas Araqchi said his country had secured exemptions for oil and petrochemical exports, the release of some frozen assets and the launch of a reconstruction and development plan for Iran.
“High-level talks between the United States and Iran in Switzerland over the weekend appear to have produced some progress, with both sides agreeing to establish a high-level committee,” said IG market analyst Tony Sycamore.
“However, it remains to be seen whether these measures will produce significant results on the ground, particularly in southern Lebanon, where both Israel and Hezbollah seem determined to continue their fight.”
‘Very real risks’
Ahead of the talks, the number of ships passing through the Strait of Hormuz fell sharply on Sunday, shipping data showed, after Iran announced it had closed the waterway again, citing Israeli and American violations of the interim peace deal.
Israeli strikes in Lebanon killed at least 20 people on Saturday, Lebanese state news agency NNA said, a day after a ceasefire with Hezbollah came into force, aimed at stopping months of escalating violence.
“Recent developments show that moving towards a more permanent agreement will be challenging, with very real risks of an outbreak of hostilities during the 60-day ceasefire,” ING analysts said in a note.
Still, oil prices fell more than 8% last week on hopes of higher supply from the release of stranded cargoes within the Gulf and the possible lifting of U.S. sanctions on Iranian oil as part of the U.S.-Iran deal.
More than 25 million barrels of Iranian oil have crossed the virtual blockage line since Monday, the head of the National Iranian Oil Company, Hamid Bovard, told state television on Sunday.
The United Arab Emirates, Kuwait and Iraq offered more oil to their customers last week.
Iraq plans to gradually restore crude oil production to between 4.2 million and 4.3 million barrels per day, Iraq’s deputy oil minister for upstream affairs said in a statement on Sunday.
