Uncertainty over US-Iran nuclear talks and Trump's tariffs pressure, oil prices decline

Investing.com - On Monday during Asian trading hours, oil prices fell more than 1%, pausing last week’s strong rally as investors weigh the prospects of a third round of nuclear talks between the US and Iran and new uncertainties stemming from US trade policies.

As of 20:50 Eastern Time (01:50 Tuesday Beijing Time), April-expiring Brent crude futures declined 1% to $71.03 per barrel, while West Texas Intermediate (WTI) crude futures fell 0.9% to $65.75 per barrel.

Last week, both contracts surged nearly 6% amid signs of an imminent US-Iran conflict, and an unexpected drop in US crude inventories also boosted prices.

Get advanced commodity market insights with analyst commentary on Investing.com

Traders Focus on US-Iran Third Round of Nuclear Negotiations

Iran and the US are scheduled to hold their third round of nuclear talks in Geneva on Thursday, raising expectations that tensions may ease.

Iranian Foreign Minister Abdollahian said on CBS’s “Face the Nation” on Sunday that there is a significant chance of reaching a diplomatic solution, and that a resolution is within reach. Market participants interpreted these comments as signals of willingness to compromise.

Iran is a key oil producer within OPEC and holds the world’s largest proven crude oil reserves.

Iran is also located along the Strait of Hormuz, a critical chokepoint through which about one-fifth of global seaborne oil passes. Any escalation involving Iran could disrupt oil flows and drive up freight and insurance costs.

Trump Raises New Global Tariffs from 10% to 15%

Adding to market unease, US President Donald Trump announced new global tariffs, raising the initial 10% tariffs on imported goods—imposed for 150 days after the Supreme Court overturned his earlier broader tariff plan—to 15%, the maximum allowed under relevant regulations. This injects further uncertainty into global trade flows and demand outlooks.

Higher tariffs could disrupt supply chains and provoke retaliatory measures from trading partners. Slowing trade volumes and weak industrial output often translate into softer fuel demand.

This article was translated with AI assistance. For more information, see our Terms of Use.