Diplomatic progress between Washington and Tehran sparks speculation of eased sanctions, pressuring crude markets.
Oil futures fell in early Asian trading as optimism grew over a potential revival of the 2015 nuclear accord between the US and Iran. Reports indicated progress in indirect talks, raising expectations of increased Iranian crude exports if sanctions are lifted.
Brent crude dropped 1.2% to USD 78.30 a barrel, extending last week’s 3% decline. Analysts estimate Iran could add 1-1.5 million barrels per day to global supply within months of a deal, further easing tight markets.
Goldman Sachs noted the risk of a near-term supply surge but maintained its bullish outlook, citing OPEC+ production cuts and rebounding Chinese demand.