Oil prices slipped more than 1% in Asian trade on Monday, pausing last week’s strong rally, as investors weighed the prospect of a third round of U.S.-Iran nuclear talks and fresh uncertainty from U.S. trade policy.
As of 20:50 ET (01:50 GMT), Brent Oil Futures expiring in April fell 1% to $71.03 per barrel, while West Texas Intermediate (WTI) crude futures slipped 0.9% to $65.75 per barrel.
Both contracts surged nearly 6% last week on signs of imminent U.S.-Iran conflict, while an unexpected drop in U.S. crude stockpiles also boosted gains.
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Traders eye third round of US-Iran nuclear talks Iran and the United States are set to hold a third round of nuclear talks on Thursday in Geneva, raising expectations that tensions could de-escalate.
Iranian Foreign Minister Abbas Araghchi told CBS’s “Face the Nation” on Sunday that there was a good chance of having a diplomatic solution and that a solution is within their reach, comments that markets interpreted as signaling a willingness to compromise.
Iran is a key producer within the Organization of the Petroleum Exporting Countries (OPEC) and holds some of the world’s largest proven crude reserves.
It also sits along the Strait of Hormuz, a critical chokepoint through which roughly a fifth of global seaborne oil passes. Any escalation involving Iran risks disrupting flows and lifting freight and insurance costs.
Trump hikes new global tariffs from 10% to 15% Adding to market unease, U.S. President Donald Trump announced fresh global tariffs, initially setting a 10% levy on imports for 150 days after the U.S. Supreme Court struck down his earlier, broader tariff programme.
The administration raised the rate to 15% on Saturday, the maximum allowed under the relevant statute, injecting further uncertainty into global trade flows and the demand outlook.
Higher tariffs disrupt supply chains and risk triggering retaliatory measures from trading partners. Slower trade volumes and weaker industrial output typically translate into softer fuel demand.
