Oil prices saw a notable downturn of more than 1.5% amid positive momentum in nuclear negotiations between the United States and Iran. Brent crude futures dropped by $1.10, or 1.6%, settling at $66.86 per barrel, while U.S. West Texas Intermediate (WTI) declined by $1.11, or 1.7%, to $63.57 per barrel.

The progress in talks suggests a potential easing of sanctions on Iran, which could lead to an increase in Iranian oil exports. This anticipated rise in supply has prompted market adjustments, reflecting the dynamic nature of global oil economics.​

Market analysts, including Yeap Jun Rong from IG, have highlighted persistent uncertainties in the supply-demand outlook, compounded by concerns over the impact of U.S. tariffs on global economic growth. The potential for a U.S. recession, with a near 50% chance within the next year according to a Reuters poll, adds another layer of complexity to the market’s response.​

Despite recent sanctions imposed on a Chinese refinery for processing Iranian oil, the overall sentiment leans towards optimism, with the possibility of a new framework agreement between the U.S. and Iran on the horizon. Such an agreement could reshape the global oil supply chain, influencing prices and economic strategies worldwide.​