Oil Dips as US-Iran Negotiations Progress, Brent Falls to $110
Global crude oil prices dipped further on Tuesday as diplomatic efforts to ease tensions between the US and Iran eased market concerns about potential supply disruptions.
International benchmark Brent crude futures for January delivery fell 0.2% to $110.52 a barrel, compared with the previous close of $110.74. US benchmark West Texas Intermediate (WTI) crude futures for December delivery declined 0.1% to $101.42 a barrel, down from $101.49 at the previous close.
Turkish National Intelligence Organisation chief Ibrahim Kalin, Saudi Defence Minister Prince Khalid bin Salman and Pakistani Chief of Army Staff Asim Munir held talks in Tehran on Monday with Iranian President Masoud Pezeshkian, Iranian Foreign Minister Abbas Araghchi and Secretary of Iran’s Supreme National Security Council Mohsen Rezaei.
According to security sources, the talks focused on addressing security challenges in Palestine, Lebanon, the Strait of Hormuz and Yemen, emphasising regional ownership, collective resilience, joint deterrence and confidence-building measures.
Negotiations between the US and Iran were also discussed during the meetings.
The officials also stressed the importance of strengthening regional cooperation, solidarity, and collective security under the Mecca Defence Alliance, formed in August by Türkiye, Saudi Arabia, and Pakistan.
Kalin’s visit, during which he continued high-level contacts in Iran, came amid escalating tensions stemming from the US-Israeli war with Iran and Türkiye’s ongoing mediation efforts in regional crises.
The diplomatic efforts raised hopes of easing tensions in the Middle East and reducing the risk of disruptions to oil shipments through the Strait of Hormuz, putting downward pressure on prices.
However, Iran’s firm stance on its conditions for negotiations with Washington limited further price declines by keeping uncertainty over prospects for a diplomatic breakthrough alive.
Ali Bagheri, deputy secretary of Iran’s Supreme National Security Council, said the US must accept and implement seven conditions set by Tehran before the two countries can begin serious negotiations.
He said Tehran presented the conditions in response to Washington’s past conduct and repeated violations of its negotiating commitments.
The Iranian official said Tehran could assess whether serious negotiations would be possible if Washington accepted and implemented the conditions.
Otherwise, he warned, Washington might seek a temporary agreement to serve its political interests before returning to a policy of pressure or military intervention after the elections.
The seven conditions presented by Tehran to Washington include lifting the naval blockade, guaranteeing safe passage for commercial and oil tankers through the Strait of Hormuz, removing unilateral sanctions, granting exemptions for oil exports, releasing frozen assets, ensuring nuclear materials remain inside Iran and ending the war.
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