Markets watch US–Iran talks as crude prices move down

Global oil prices fell on Monday, June 22, after the conclusion of talks between the United States and Iran in Switzerland.

Downward pressure on the market came amid expectations of a possible easing of sanctions on Tehran, which could increase global oil supply, Reuters reports.

Brent crude futures were down $1.19, or 1.48%, at $79.38 per barrel at 08:16 Baku time. Earlier in the session, prices had climbed to $82.30 amid a tense start to the negotiations and concerns over shipments through the Strait of Hormuz.

US West Texas Intermediate (WTI) futures were trading at $76.73 per barrel, while the more active August contract fell to $75.64.

According to Sugandha Sachdeva, head of analytics at SS WealthStreet, the decline in prices is primarily linked to improved prospects for a diplomatic settlement between Washington and Tehran.

Senior US and Iranian officials have concluded their first round of talks in Switzerland, mediators said. The discussions began on Sunday, June 21, under a memorandum of understanding reached last week to extend a fragile April ceasefire by at least 60 days.

By Jeyhun Aghazada