Geneva, Switzerland: Oil prices drop about 3pc after progress in Pakistan-mediated US-Iran talks and expectations of normalising supply through the Strait of Hormuz, according to market reports.
Brent crude fell by $2.67 to $77.90 a barrel after the first round of talks between US and Iranian officials on Monday. It said both sides signalled progress toward a deal and a permanent end to hostilities.
MarketWatch reported that Brent crude for September delivery fell more than 3pc to about $77.50 after the US Treasury Department granted a temporary 60-day general licence allowing the production, delivery and sale of Iranian oil.
US-traded West Texas Intermediate crude for August delivery dropped nearly 3pc to $73.73 a barrel, MarketWatch reported. A separate MarketWatch report said WTI settled below $74 after the temporary pause in sanctions on Iranian oil.
Trading Economics said Brent moved toward $77.5 on Monday after reports of a 60-day roadmap toward a final US-Iran agreement. It also cited higher expectations for supply recovery and increased shipping activity through the Strait of Hormuz.
Oil benchmarks had swung in earlier sessions as traders reacted to changing geopolitical signals around the negotiations. Crude initially climbed on uncertainty before reversing as optimism over de-escalation grew.
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Analysts cautioned that the situation remained fluid. They said energy markets would remain sensitive to any breakdown in talks or delay in sanctions relief.
