Khaberni - Oil prices fell 4% on Monday after J.D. Vance, the U.S. Vice President, said that progress had been made in the talks.
Brent crude decreased by $3.18, or 3.95%, to $77.39 per barrel by 1544 GMT. Prices had risen to $82.30 at the start of trading due to threats from U.S. President Donald Trump to resume war on Iran and Tehran's announcement of reclosing the Strait of Hormuz.
West Texas Intermediate futures fell $2.15 to $74.45 per barrel before trading on the contract ended later on Monday. The most traded August contract declined by $2.49 or 3.28% to $73.36 per barrel.
Brokers mentioned that senior officials from the United States and Iran concluded the first round of negotiations hosted by Switzerland on Monday. The talks had started on Sunday under a memorandum of understanding reached last week, which stipulates an extension of the fragile ceasefire that has been in place since April for at least another 60 days.
The United States authorized the sale of Iranian oil on Monday. The general license, announced by the Treasury Department, allows the sale of crude oil and petrochemical and petroleum products of Iranian origin until August 21.
Analyst at UBS, Giovanni Staunovo, said that Iran resumed its oil exports after they had stopped earlier this month due to the American naval blockade, adding that "pumping these barrels into the market represents additional supplies."
Shipping data showed that two crude oil tankers carrying about two million barrels of crude passed through the Strait of Hormuz on Monday, indicating an improvement in navigation after it had declined on Sunday due to concerns related to passing through the waterway.
ANZ predicted the recovery of about two to three million barrels per day during the first four weeks.
It added that the recovery of supplies will remain difficult, as resuming between two and 3.5 million barrels per day during the third quarter of 2026 will depend on stabilization of the situation, while the markets could permanently or semi-permanently lose between one and two million barrels per day.
