Oil prices fall after talks between the United States and Iran

Oil prices on world markets are falling at the start of the week. They are reacting, among other things, to reports that talks between the United States and Iran over their conflict have made progress and that the Strait of Hormuz remains open. US Vice President J. D. Vance said this. Concerns about disruption to oil supplies from the Persian Gulf region have therefore eased.

At around 17:40 CEST, the price of North Sea Brent crude was down 3,8 percent, trading above 77,50 dollars a barrel. US light crude WTI was down 3,1 percent, selling for more than 73,50 dollars a barrel.

Trading had begun with Brent rising as high as 82,30 dollars a barrel. The increase was driven by US President Donald Trump's threats to resume the war with Iran and Tehran's announcement that it was closing the Strait of Hormuz again, Reuters reported.

Senior US and Iranian officials today concluded the first round of talks in Geneva, mediated by Pakistan and Qatar. The talks follow a memorandum from last week aimed at extending the fragile April ceasefire by at least another 60 days.

Prices were also pushed down by the Iranian foreign minister's announcement that Tehran had secured exemptions allowing it to continue exporting oil and petrochemical products, and had secured the release of frozen assets and the launch of a reconstruction and development plan. Iran has resumed oil exports, which were interrupted at the start of the month because of the US naval blockade, according to UBS analyst Giovanni Staunovo. The return of Iranian oil to the market means an increase in supply, putting downward pressure on prices, he said.

Two tankers carrying almost two million barrels of oil passed through the Strait of Hormuz today, according to data tracking ship movements across the world's seas and oceans. This signals a partial easing of the situation after traffic slowed the previous day amid concerns about the safety of shipping. Some countries in the region, including the United Arab Emirates, Kuwait and Iraq, also increased the amount of oil offered to customers over the past week. Iraq is also planning to gradually restore production to 4,2 to 4,3 million barrels a day.

According to estimates by ANZ, two to three million barrels of oil a day could return to the market in the first four weeks. Supply could increase further in the second half of the year if the situation in the region stabilises. Analysts caution, however, that a full recovery in supplies this year is unlikely, because the initial increase will mainly result from improved logistics, while subsequent growth will depend on the recovery of production and refining.

Oil prices in dollars per barrel (about 159 litres)