LONDON: Global crude oil prices fell significantly on Monday after diplomatic progress between the United States and Iran in Switzerland reduced fears of supply disruptions in international markets.
Brent crude dropped by more than one dollar to around $79 per barrel, while West Texas Intermediate (WTI) declined to approximately $75 per barrel. Murban crude also slipped to about $73 per barrel, reflecting a broad downturn across major benchmarks.
The decline followed reports that Iran has claimed progress in negotiations with US officials, including potential relief for its oil and petrochemical exports.
According to Iranian Foreign Minister Abbas Araghchi, Tehran has secured understandings related to export flexibility, partial release of frozen assets, and approval for certain development projects.
Market analysts said the developments eased concerns about tight global supply, particularly from the Gulf region. However, they cautioned that the situation remains uncertain and dependent on the outcome of further rounds of negotiations.
A high-level committee has reportedly been formed to continue talks between the two sides after an initial round of discussions in Switzerland. Mediators say both parties agreed to maintain dialogue to explore possible agreements on broader economic and security issues.
Despite the positive market reaction, analysts noted that ongoing regional tensions—particularly in the Middle East—continue to pose risks to stability. Shipping activity through the Strait of Hormuz has reportedly declined, while instability linked to Lebanon and broader regional conflicts continues to influence investor sentiment.
Energy experts also pointed out that recent output increases from Iraq, the United Arab Emirates, and Kuwait have added further pressure on prices, contributing to the overall downward trend in the oil market.
