Oil prices fell by more than 1 percent at the start of the week, as concerns over supply disruptions eased after the United States and Iran pledged to continue indirect talks regarding Tehran’s nuclear program, reducing pressure across energy markets.
Brent crude futures declined by around 1.2 percent to 67.21 dollars per barrel, while US West Texas Intermediate crude dropped by 1.3 percent to 62.73 dollars per barrel. The pullback followed positive signals from both Washington and Tehran after discussions described by analysts as constructive, helping calm fears surrounding supply stability in the Middle East.
Analysts noted that the continuation of dialogue significantly reduced immediate risks to oil flows, particularly given that nearly one fifth of global oil consumption passes through the Strait of Hormuz between Iran and Oman. Oil prices had already posted losses exceeding 2 percent last week, marking their first decline after seven consecutive weeks of gains, as geopolitical and financial tensions in the region showed signs of easing.
Despite the relative calm, markets remain cautious, with price volatility still elevated. Any negative developments could quickly reintroduce risk premiums into oil prices.
In a related context, investors are closely monitoring international efforts aimed at curbing Russia’s oil export revenues. The European Commission has proposed a ban on services supporting Russian seaborne oil exports. Meanwhile, reports indicate that Indian refiners, among the largest buyers of Russian seaborne crude, have begun adjusting their procurement strategies for deliveries in the coming months. These shifts could reshape global oil flows and influence the balance between supply and demand.
Analysts broadly agree that oil prices will remain highly sensitive to changes in supply dynamics, demand trends, and international policy decisions, as well as the market’s ability to absorb sudden disruptions in global energy flows.
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