Crude oil stays under pressure as US-Iran negotiations progress and Washington moves to release reserve barrels. Iran's government confirmed it received a new US proposal, while separate news of a possible easing of Russia sanctions added further downside. Traders now watch whether the talks produce a breakthrough or a stalemate, since either outcome will set the next direction for prices.
US-Iran talks weigh on prices
Crude oil remains under pressure as additional US-Iran talks ease tensions between the two sides. Both parties are still negotiating over Iran's recent proposal to reopen the Strait of Hormuz within seven days under certain conditions, and the disagreement now reportedly centers on the sequencing of the steps rather than the plan's components.
Iran's government spokesperson said Foreign Minister Araghchi presented a US proposal to the cabinet, though no further details were given. Traders will therefore keep watching the headlines for more information.
SPR release and Russia sanctions talk add pressure
In terms of immediate catalysts, the US offered up to 40 million barrels from the strategic oil reserve, which triggered a quick dip in oil prices. Additional downside came after Trump signaled he favors easing sanctions on Russia in exchange for political prisoners.
The news mattered for the oil market because easing restrictions on Russia could eventually put more Russian crude onto global markets, improving supply. A breakthrough in the US-Iran negotiations would likely send oil prices quickly lower, while a prolonged stalemate or a re-escalation would keep the market supported into new highs.
Chart points to a test near $87
On the daily chart, crude oil is approaching the lower bound of its channel around the 87.00 level. If price reaches that zone, buyers may step in with a defined risk below it, positioning for a rally toward 110.00 resistance. Sellers, meanwhile, want a break lower to build bearish bets toward the 80.00 handle.
Looking ahead, traders have the US ADP report and the PCE price index due, followed by the ISM Manufacturing PMI and jobless claims figures, then the NFP report to close the week. The focus, though, stays on US-Iran developments.
Source: investingLive
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