Oil prices fall about 1% on Monday

Oil prices fell about 1 per cent on Monday as the United States and Iran prepared for a third round of nuclear talks, easing fears of escalation, while fresh tariff hikes by US President Donald Trump weighed on the global growth outlook and fuel demand.

Brent crude futures declined 87 cents to $70.89 a barrel by 0722 GMT, while US West Texas Intermediate (WTI) dropped 85 cents to $65.63 a barrel. The losses followed gains of more than 5 per cent last week, driven by rising tensions between Washington and Tehran.

Trump said he would raise a temporary tariff on US imports from 10 per cent to 15 per cent, the maximum allowed under the law, after the US Supreme Court struck down his previous tariff programme. The US Customs and Border Protection agency said it would halt collections of tariffs imposed under the International Emergency Economic Powers Act from early Tuesday.

Market analysts said the tariff move triggered risk aversion across assets, weighing on crude prices despite lingering geopolitical concerns.

Oman’s foreign minister said Washington and Tehran would hold a third round of nuclear talks in Geneva on Thursday. An Iranian official indicated Tehran was prepared to make concessions on its nuclear programme in exchange for sanctions relief and recognition of its right to enrich uranium.

Goldman Sachs expects the global oil market to remain in surplus in 2026, assuming no disruption to Iranian supply, and raised its fourth-quarter 2026 forecasts for Brent and WTI by $6 to $60 and $56 a barrel, respectively, citing lower OECD inventories. However, potential sanctions relief for Iran and Russia could boost supply over the longer term and pose downside risks to prices.

Attribution: Reuters