Global crude oil prices declined today after US and Iranian officials wrapped up their first round of talks in Switzerland.
Brent crude slipped by 1.7 per cent to 79 US dollars and 17 cents per barrel, while West Texas Intermediate (WTI) crude dropped half a per cent to 75 US dollars and 32 cents per barrel, at the time of the last report.
Oil prices fall after mediators Qatar and Pakistan said the U.S. and Iran agreed on a roadmap aimed at reaching a final deal within 60 days.
In early European trading, Brent crude falls 2% to $78.94 a barrel, while the most active August WTI contract is down 0.9% to $75.19 a barrel.
Prices had risen earlier after President Trump threatened Iran over its support for Hezbollah.
Qatar and Pakistan said Washington and Tehran established a line of communication to ensure safe passage through the Strait of Hormuz, while Iranian negotiator Hossein Ghorbanzadeh signaled progress on sanctions waivers for Iran’s oil sales and the release of frozen assets.
“Recent developments show that moving towards a more permanent deal will be challenging,” analysts at ING say.
“The key factor is still whether oil and LNG flows from the Persian Gulf continue to recover, despite all the rhetoric.”