Oil prices drop nearly 2% after encouraging progress in US-Iran talks

Global oil prices declined across major benchmarks, with WTI, Brent and Murban crude all recording losses after the US and Iran agreed upon a 60-day roadmap towards a final deal. WTI crude was trading at $75.29 per barrel, down $0.56 or 0.74% while Brent crude fell $1.55, or 1.92%, to $79.02 per barrel. Murban crude was also lower, declining $0.30 or 0.41% to $73.63 per barrel. Earlier, Iranian Foreign Minister Abbas Araghchi said tireless Pakistani and Qatari mediation has delivered major progress to end Lebanon War. In a post on X, he highlighted that oil and petrochemical exports are waived, adding that a naval blockade has also been lifted. He added that the US has agreed to release some frozen assets released. He said major reconstruction & development plan has been launched for Iran. “1st real test: Lebanon deconfliction cell,” he concluded. The remarks came after mediators Pakistan and Qatar announced that the United States and Iran had agreed on a roadmap aimed at reaching a final deal within 60 days. According to the mediators, the roadmap lays the foundation for the immediate start of further technical negotiations. The first session of high level talks under the framework of the Islamabad Memorandum of Understanding concluded in Burgenstock, Switzerland, with the participation of representatives from Iran, the US, and the two mediating parties. The Lake Lucerne Summit was conducted in a positive and constructive atmosphere. Encouraging progress has been made including the creation of a mechanism for further technical talks. Building on the MoU, the parties have agreed to the establishment of a High Level Committee, which will provide political oversight on the mediation. Chief negotiators will report regularly to the High Level Committee and lead working groups focused on nuclear, sanctions, and a monitoring and dispute resolution group to ensure the effective implementation of the MoU, and on other matters.