Oil prices fell Monday after U.S.-Iran talks in Switzerland eased supply concerns. Tehran said it had secured waivers for oil and petrochemical exports.
Brent crude futures fell $1.53, or 1.90%, to $79.04 a barrel by 0656 GMT. Earlier in the session, prices had risen as high as $82.30.
U.S. West Texas Intermediate crude futures traded at $76.53 a barrel, down 7 cents, ahead of the contract’s expiry later Monday. The more active August contract fell 55 cents to $75.30 a barrel.
Mediators said high-ranking U.S. and Iranian officials wrapped up their first round of talks in Switzerland on Monday. The talks began on Sunday under a memorandum of understanding to extend an April ceasefire for at least 60 days.
Iranian Foreign Minister Abbas Araqchi said Iran had secured waivers for oil and petrochemical exports. He also cited the release of some frozen assets and the start of a reconstruction and development plan for Iran.
IG market analyst Tony Sycamore said the talks appeared to show some progress, with both sides agreeing to form a high-level committee. However, he said results on the ground remained uncertain, especially in Southern Lebanon.
Shipping data showed fewer vessels passed through the Strait of Hormuz on Sunday after Iran said it had again closed the waterway. Tehran cited Israeli and U.S. violations of the interim peace deal as the reason.
Lebanon’s state news agency NNA said Israeli strikes killed at least 20 people in Lebanon on Saturday. The strikes came one day after a ceasefire with Hezbollah took effect.
Read: Oil Flows Resume as US–Iran Agreement Takes Effect
ING analysts said risks of renewed hostilities remained “very real” during the 60-day ceasefire. Nevertheless, oil prices fell by more than 8% last week on hopes for increased supply and a possible easing of U.S. sanctions on Iranian oil.
National Iranian Oil Company head Hamid Bovard told state TV that more than 25 million barrels of Iranian oil had crossed the virtual blockade line since Monday.
The United Arab Emirates, Kuwait and Iraq offered more oil to customers last week. Additionally, Iraq plans to restore crude output gradually to between 4.2 million and 4.3 million barrels per day, Iraq’s deputy oil minister for upstream affairs said Sunday.
