Oil Prices Slip as Easing Tensions Pressure Brent
Global oil prices fell on Monday as signs of easing regional tensions weighed on crude benchmarks. Brent crude hovered at $67.09 per barrel, down 0.8 per cent from the previous close of $67.66, while U.S. benchmark West Texas Intermediate (WTI) declined 0.8 per cent to $62.76 per barrel, compared with $63.31 in the prior session.
The decline followed announcements that negotiations between Washington and Tehran over Iran’s nuclear program will continue, reducing immediate fears of supply disruption in the Gulf.
U.S. President Donald Trump described the indirect talks in Muscat, Oman, as “very good,” while Iranian President Masoud Pezeshkian called the discussions a step forward.
The easing of geopolitical risk around Iran, a major producer located on the Strait of Hormuz, exerted downward pressure on prices.
Meanwhile, Trump signed an executive order authorising additional tariffs of up to 25 per cent on goods imported from countries that source products or services from Iran, a move analysts say could reshape trade flows but had limited immediate impact on crude markets.
Broader economic signals also influenced sentiment. Federal Reserve Vice Chair Philip Jefferson expressed cautious optimism about U.S. growth, citing productivity gains as a potential anchor for inflation. San Francisco Fed President Mary Daly suggested one or two more rate cuts may be needed to support the labor market.
Bond yields edged higher, with the U.S. 10-year Treasury rising two basis points to 4.23 per cent, while the dollar index held steady at 97.6. Expectations of continued Fed easing helped limit the decline in oil prices, keeping Brent above the $67 threshold despite geopolitical and macroeconomic headwinds.
