Oil Prices Decline Amidst US, Iran Talks in Qatar
Oil prices fell more than 1% on Tuesday as investors assessed conflicting signals over planned US-Iran talks, with expectations that diplomatic efforts could reduce risks to crude supplies from the Middle East outweighing lingering uncertainty.
International benchmark Brent crude traded at $73 per barrel. US benchmark West Texas Intermediate (WTI) fell about 1.3% to $69.86 per barrel, compared with $70.75 in the previous session.
US President Donald Trump on Monday claimed that Iran wanted a meeting, and the two sides will meet on Tuesday in the Qatari capital, Doha.
“Iran requested a meeting. It will take place tomorrow in Doha,” Trump said in a brief post on his Truth Social account.
Earlier in the day, however, Iran’s Deputy Foreign Minister Kazem Gharibabadi said “no technical talks” with the US were scheduled this week in Doha, refuting US media reports. But he added that consultations with mediators continued.
Axios had earlier reported that the US and Iran, after recent strikes, had agreed to resolve their differences over the Strait of Hormuz, which Tehran shut after the US and Israel launched attacks in late February.
Traders viewed the prospect of renewed diplomacy as potentially easing concerns over disruptions to shipping through the Strait of Hormuz, a vital route for global oil exports.
Analysts said investors were unwinding part of the geopolitical risk premium that had supported oil prices in recent months, although uncertainty over the outlook for US-Iran relations and the security of Middle East shipping routes was likely to keep prices volatile.
Meanwhile, markets continue to price in at least one interest rate increase by the US Federal Reserve later this year. Expectations that tighter monetary policy could slow economic activity and dampen fuel demand are also limiting gains in oil prices. Oil Prices Rise as US, Iran Strikes Raise Supply Risk
