Expectations of eased sanctions could boost Iranian crude exports, adding supply to global markets.
Oil prices declined as investors priced in the likelihood of a nuclear deal between the US and Iran. A potential agreement could lift sanctions, allowing Iran to increase crude exports by up to 1 million barrels per day within months.
Prior negotiations stalled in 2022, but recent talks have shown progress. Analysts estimate Iran currently exports around 1.5 million barrels per day, mostly to China, despite sanctions. A deal would pressure prices further amid already elevated global inventories.
Brent crude futures dropped 1.8% to $82.30 a barrel, while WTI fell 1.7% to $78.10.