Oil pulls back as U.S.–Iran nuclear talks set to resume
Oil retreated from a six-month high on Monday after Oman said a third round of talks between Washington and Tehran would continue in Geneva this week.
Tensions in the Middle East have remained on high alert for weeks after US President Donald Trump stated that an attack on Iran could be imminent.
Since then, a sense of calm has returned to oil markets. reports It was stated that any attack on Friday would be limited to military or government facilities, reducing the risk of a protracted conflict between the two countries and the risk of Iranian retaliation against US bases in the region.
“The geopolitical atmosphere, at least for today, has softened a little bit, and I think we’re seeing that reflected in the decline in prices,” Edward Bell, acting chief economist at Emirates NBD, told CNBC’s Dan Murphy on Monday.
Brent rose to a six-month high of $71 last week as supply concerns from Iran increased the risk premium. What Goldman Sachs said It contributed around 6 dollars to the oil price.
Oil declines after announcement of Iran-US talks
The third round of indirect talks between the US and Iran is expected to continue in Geneva on Thursday between Iranian Foreign Minister Abbas Araghchi and US special envoy for the Middle East Steve Witkoff. Meetings will be held mediated Badr Al Busaidi, Minister of Foreign Affairs of Oman.
The Trump Administration has been pressing for concessions on Iran’s nuclear program since negotiations resumed in Oman earlier this month. Relations came to a halt after Trump withdrew the USA from the JCPOA in 2018. The USA argues that Iran cannot have nuclear weapons and cannot enrich uranium. Meanwhile, Tehran has long maintained that its nuclear program is for civilian purposes only.
of Iran Aragchi has appeared on US networks several times in recent days to explain Iran’s position. He spent more than 20 minutes on MS Now’s Morning Joe on Friday. Speaking to CBS News over the weekend, Aragchi said Iran was “still working” on an offer to Witkoff but that the country was “ready to talk and negotiate on these drafts” at the meeting in Geneva on Thursday, adding that a “good chance” remained for a diplomatic solution to the nuclear issue.
Iranian President Massoud Pezeshkian said Iran is “committed to peace and stability in the region.” in question On Sunday
“Recent negotiations included the sharing of practical proposals and provided encouraging signals. However, we continue to closely monitor US actions and have made all necessary preparations for any possible scenario.” he added.
increasing restlessness
Student protests took place in Tehran for the second time in a row. Students clashed with pro-regime demonstrators in memory of the lives lost in the brutal crackdown that followed nationwide protests that gripped Iran last month. The US-based Human Rights Activists News Agency said at least 7,015 people had been killed in previous protests and crackdowns. was accused About the USA and Trump.
The United States has since built its largest military presence in the region, sending a second carrier strike group to the Middle East to join the USS Abraham Lincoln, which is now just 250 miles off the coast of Oman in the Arabian Sea.
Tina Fordham, founder of Fordham Global Foresight, told CNBC’s Ian King on Monday that “it’s particularly impossible to know what Trump will do” despite the redirection of American assets in the region to Iran.
“We’re still a few days away from Thursday. There’s still a lack of clarity on how much both sides are willing to commit to get a deal done. As you’ve heard comments from both Iranian and U.S. officials, there’s still quite a bit of a gap between them in terms of the key points they’re discussing,” Bell told CNBC. he said.
Supreme Court Decline
Trump’s ambitions in Iran may also have been hampered by a recent Supreme Court decision that found many of the sweeping tariffs he announced last year were illegal; This creates new uncertainty over the president’s signature economic policy.
President Trump’s decision on Iran could swing either way, analysts told CNBC on Monday.
“There are many paths Trump could take, but the fact that he was dealt this blow by the Supreme Court shows that he cannot follow that path smoothly,” Fordham added.
Under the U.S. Constitution, Congress alone has the authority to send U.S. troops into war, except for limited attacks for national security reasons. Both Republicans and Democrats warned The president needs Congressional approval before any potential action against Iran can be taken.
