Oil Prices Decline 1% Amid US-Iran Nuclear Talks, Trump's Tariff Hikes

Oil Prices Decline Amid Easing US-Iran Tensions and Tariff Uncertainty

Key Highlights:

• Brent crude futures fell by 76 cents, or 1.06%, to $71 per barrel as of 0354 GMT
• US West Texas Intermediate (WTI) crude futures dropped 75 cents, or 1.10%, to $65.75 per barrel
• Crude oil prices on Multi Commodity Exchange (MCX) were marginally down by 0.30% at ₹6,039

Market Analysis:

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The decline in oil prices is attributed to easing concerns about US-Iran tensions, following the announcement of a third round of nuclear negotiations in Geneva on Thursday. Additionally, the uncertainty surrounding global economic growth and fuel demand, triggered by the US tariff hike announcements, has also weighed on crude prices.

Global Developments:

Iran and the US are set to hold a third round of nuclear negotiations in Geneva on Thursday, with Tehran willing to consider concessions on its nuclear program in exchange for sanctions relief and formal recognition of its right to enrich uranium. The US Supreme Court's invalidation of Trump's earlier tariff program has also led to a "comprehensive assessment" of the US court's ruling by China, which has urged Washington to withdraw the "relevant unilateral tariff measures" imposed on its trading partners.

Crude Oil Prices Outlook:

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Domestic brokerage firm JM Financial expects oil prices to remain subdued till the November 2026 mid-term elections in the US, as Saudi Arabia-led OPEC+ output hikes seem to be primarily aimed at meeting the US President's near-term request for lower oil prices. Meanwhile, Kotak Securities believes that crude oil prices may remain range-bound ahead of the third round of US-Iran nuclear talks in Geneva on Thursday, with tariff uncertainty also tempering sentiment.