Oil prices fell on Monday after US-Iran talks in Switzerland concluded with Tehran saying it had secured waivers for oil and petrochemical exports, easing concerns over potential supply disruptions in global energy markets.Brent crude futures were down $1.53, or 1.90 per cent, at $79.04 per barrel. Prices had earlier risen to $82.30 at the start of trading amid uncertainty surrounding the talks and renewed geopolitical tensions.US West Texas Intermediate (WTI) crude futures traded at $76.53 a barrel, down 7 cents, ahead of the contract’s expiry later on Monday. The more active August contract fell 55 cents to $75.30 a barrel. There was no settlement in the US market on Friday due to a public holiday.The decline followed the conclusion of high-level talks between US and Iranian officials in Switzerland. Mediators said the first round of discussions wrapped up on Monday after beginning on Sunday under a memorandum of understanding reached last week to extend a fragile ceasefire from April by at least another 60 days.Iranian Foreign Minister Abbas Araqchi said Tehran had secured significant concessions during the negotiations.Market participants interpreted the developments as a potential step towards increased Iranian oil flows into international markets.“High-level talks between the US and Iran in Switzerland over the weekend appear to have produced some progress, with both sides agreeing to establish a high-level committee,” IG market analyst Tony Sycamore told Reuters.“However, whether these steps will deliver meaningful results on the ground remains to be seen, particularly in Southern Lebanon where both Israel and Hezbollah are seemingly intent on continuing their struggle.”The talks took place against a backdrop of continuing regional tensions.Before negotiations concluded, shipping data showed the number of vessels passing through the Strait of Hormuz fell sharply on Sunday after Iran announced it had again closed the waterway, citing alleged Israeli and US violations of the interim peace agreement.Meanwhile, violence persisted elsewhere in the region. Lebanon’s state news agency NNA reported that Israeli strikes killed at least 20 people on Saturday, a day after a ceasefire between Israel and Hezbollah took effect.Analysts at ING cautioned that risks remained elevated despite the diplomatic progress.Oil markets have nevertheless focused on the prospect of additional supply. Brent and WTI prices fell more than 8 per cent last week amid expectations that cargoes stranded inside the Gulf could be released and that US sanctions on Iranian oil exports could eventually be eased as part of a broader agreement.Hamid Bovard, head of the National Iranian Oil Company, told state television on Sunday that more than 25 million barrels of Iranian oil had passed through the virtual blockade line since Monday.Regional producers have also responded to shifting market conditions. The United Arab Emirates, Kuwait and Iraq have offered additional oil volumes to customers over the past week.Iraq’s deputy oil minister for upstream affairs said on Sunday that the country plans to gradually restore crude production to between 4.2 million and 4.3 million barrels per day.
