Oil prices fell after reports emerged that the United States and Iran could resume diplomatic talks as early as Monday or Tuesday. Mediators are expected to discuss an amended version of Iran's seven-day proposal to reopen the Strait of Hormuz, reviving hopes of easing Middle East supply tensions.
Crude oil dropped after an official briefed on the negotiations said US-Iran talks could restart as soon as Monday or Tuesday. Mediators are expected to hold separate discussions with both sides. Iranian Foreign Minister Araghchi and Qatari mediators are expected to remain in the US as the talks take place.
The discussions focus on an amended version of Iran's seven-day proposal to reopen the Strait of Hormuz, which Tehran presented on the sidelines of the UN General Assembly. The renewed contact follows a weekend of shifting signals: hopes for a diplomatic breakthrough were revived over the weekend, before Trump's rejection of Iran's initial proposal set the process back. The possibility of renewed talks has given markets a fresh glimmer of hope.
The focus now turns to whether the amended proposal can bridge the differences between Washington and Tehran. Meaningful progress could ease concerns over prolonged disruption in the Middle East and put downward pressure on crude oil prices. A failure to make progress, however, would leave the market exposed to continued geopolitical and supply risks, keeping a bid under oil prices.
Source: Investinglive
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