Oil prices drop amid U.S.-Iran nuclear talks, tariff fears

Published 21/04/2025, 03:16
© Reuters

Investing.com - Oil prices slipped on Monday, as nuclear talks between the U.S. and Iran eased supply disruption fears.

Worries that a tariff-fueled economic downturn could dent demand also weighed on crude.

Brent crude futures sank by 2.2% to $66.47 a barrel by 08:12 ET, after having advanced by 3.2% on Thursday. U.S. West Texas intermediate crude fell by 2.3% to $62.52 per barrel following a 3.5% increase in the prior session.

Both contracts had settled more than 3% higher on Thursday, the last trading day of the previous week, due to the Good Friday holiday.

Tehran, Washington make progress in nuclear discussions

Iran and the U.S. have agreed to commence expert-level discussions to design a framework for a potential nuclear deal, following a second round of indirect talks in Rome mediated by Oman. 

Iranian Foreign Minister Abbas Araqchi described the discussions as constructive, noting that both sides reached a better understanding on key principles and goals. 

The expert meetings are scheduled to begin in Oman on Wednesday, with a follow-up session planned for Saturday to assess progress.

The negotiations aim to revive the 2015 nuclear agreement, which the U.S. exited in 2018 under President Donald Trump. 

Trump has recently demanded a swift new deal to prevent Iran from developing nuclear weapons, threatening military action if an agreement is not reached promptly. 

Iran maintains that its nuclear program is for peaceful purposes but is open to discussing limited restrictions in exchange for lifting international sanctions.

Progress toward a U.S.-Iran nuclear deal raised expectations that Iranian oil could return to global markets, increasing supply. The talks also eased geopolitical tensions, reducing the risk premium typically priced into oil.

(Ayushman Ojha contributed reporting.)

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