SINGAPORE (The COW News Digital)Oil prices dropped around 1% on Monday as renewed diplomatic efforts between the United States and Iran eased fears of a military confrontation, while President Donald Trump’s new tariff hikes added uncertainty for global economic growth and fuel demand.
Brent crude fell 75 cents, or 1.05%, to $71.01 a barrel, while U.S. West Texas Intermediate slid 74 cents, or 1.11%, to $65.74 a barrel by 0055 GMT.
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Trump raised temporary U.S. import tariffs from 10% to 15%, the maximum allowed under law, following a Supreme Court ruling that struck down his previous tariff program. Tony Sycamore, an analyst at IG Markets, said the tariff news prompted risk-averse trading, weighing on crude prices despite earlier concerns over a U.S.-Iran conflict.
Iran and the U.S. are set to hold a third round of nuclear talks on Thursday in Geneva, Oman’s Foreign Minister Badr Albusaidi confirmed.
Analysts noted that the diplomatic efforts appear aimed at avoiding escalation, with Iran indicating willingness to make concessions on its nuclear program in exchange for sanctions relief and recognition of its right to enrich uranium, according to a senior Iranian official.
Sycamore added that a U.S. military strike remains unlikely given the potential for regional destabilization and domestic political consequences ahead of the November midterm elections.
