Oil prices slipped nearly 2% in Asian trading on Monday, as nuclear talks between the U.S. and Iran eased supply disruption fears, while a temporary ceasefire between Russia and Ukraine further reduced oil’s risk premium.
As of 21:55 ET (01:55 GMT), Brent Oil Futures expiring in June dropped 1.8% to $66.76 per barrel, while West Texas Intermediate (WTI) crude futures slumped 1.9% to $62.82 per barrel.
Both contracts had settled more than 3% higher on Thursday, the last trading day of the previous week, due to the Good Friday holiday.
Tehran, Washington make progress in nuclear discussions
Iran and the U.S. have agreed to commence expert-level discussions to design a framework for a potential nuclear deal, following a second round of indirect talks in Rome mediated by Oman.
Iranian Foreign Minister Abbas Araqchi described the discussions as constructive, noting that both sides reached a better understanding on key principles and goals.
The expert meetings are scheduled to begin in Oman on Wednesday, with a follow-up session planned for Saturday to assess progress.
The negotiations aim to revive the 2015 nuclear agreement, which the U.S. exited in 2018 under President Donald Trump.
Trump has recently demanded a swift new deal to prevent Iran from developing nuclear weapons, threatening military action if an agreement is not reached promptly.
Iran maintains that its nuclear program is for peaceful purposes but is open to discussing limited restrictions in exchange for lifting international sanctions.
Progress toward a U.S.-Iran nuclear deal raised expectations that Iranian oil could return to global markets, increasing supply. The talks also eased geopolitical tensions, reducing the risk premium typically priced into oil.
Putin orders one-day ceasefire in Ukraine for Easter, no signs of extension
Russian President Vladimir Putin unexpectedly announced a one-day ceasefire in Ukraine on Saturday to mark the Orthodox Easter holiday.
The ceasefire was set to last only through Easter Sunday, halting frontline operations temporarily.
International calls, including from Washington, urged Russia to extend the pause and pursue more sustained humanitarian efforts—but as of Sunday, the Kremlin signaled no intention of prolonging the truce.
Moscow accused Ukrainian forces of launching artillery strikes throughout the day, while Kyiv claimed Russian troops used the ceasefire as cover to reposition and reinforce.
Markets often react swiftly to any signals of reduced geopolitical risk, especially in major energy-producing regions.
Although the truce was short-lived and not extended, the initial announcement may have sparked hopes that tensions could de-escalate or pave the way for further dialogue.
Source: Investing