Commerzbank reports that diplomatic progress in US-Iran talks has pressured Oil, with Brent falling to USD 77.90 and WTI also lower. A 60‑day US license allows Iran to sell crude internationally, and more than 30 million barrels have already departed for Asia. The prospect of increased Iranian supply is seen as a key driver of recent Oil price declines.

Iranian supply prospects pressure crude

"The main theme overnight was diplomatic progress in US-Iran peace negotiations, which sent oil prices lower and provided a mixed backdrop for equities."

"The US then issued a 60-day license allowing Iran to sell oil on the international market, a significant easing of longstanding sanctions as the two sides work toward a permanent peace deal within the 60-day framework signed last week."

"More than 30 million barrels of oil had departed Iran for Asia in the past week, ahead of the waiver. The prospect of Iranian crude re-entering global markets weighed on crude oil prices overnight."

"Brent crude oil prices fell 3.3% to USD77.90, pressured by signs of diplomatic progress in US-Iran talks and the prospect of Iranian oil re-entering global markets."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)