Oil prices decline amid anticipation of nuclear talks between the US and Iran and concerns over global demand Global
oil prices fell significantly during trading on Monday, with Brent crude futures dropping below $71 a barrel after hitting a six-month high at the end of last week's trading.
US West Texas Intermediate crude futures also fell below $66 per barrel amid caution in the markets ahead of developments in the Iranian nuclear issue.
Nuclear talks between Washington and Tehran put pressure on oil prices
Investors are awaiting developments in the nuclear talks between the United States and Iran, amid expectations that negotiations will continue this week. The Iranian foreign minister confirmed that a diplomatic solution satisfactory to all parties is now possible, indicating his intention to meet with the US envoy in Geneva.
This development has reinforced market expectations that sanctions on Iran may be eased, which could lead to an increase in Iranian oil exports and a rise in global supply, putting downward pressure on Brent and West Texas crude prices.
Limited concerns about supplies and the Strait of Hormuz
Reports also indicated that any potential US military action against Iran would target specific sites without affecting oil infrastructure on a large scale, reducing the likelihood of major supply disruptions.
Nevertheless, traders are still closely monitoring the risks associated with the Strait of Hormuz, which is a vital artery for oil exports in the region, as any tension could directly affect global supply flows and cause prices to fluctuate sharply.
US tariffs increase pressure on demand forecasts
On the other hand, US trade policies have added further pressure to the market, after former US President Donald Trump announced his intention to raise global tariffs to 15%, following the Supreme Court's rejection of reciprocal tariffs.
This move raises fears of a possible global economic slowdown, which could negatively affect energy demand, especially given the fragility of the global economic recovery.
Bearish outlook from Goldman Sachs
Goldman Sachs has warned that oil prices could come under further pressure in the last quarter of 2026.
It noted that the easing of sanctions on Iran or Russia could lead to a rapid increase in supply and a build-up of inventories, which could push Brent crude down by around $5, while West Texas Intermediate crude could fall by around $8.
Overview of market trends
Overall, oil prices remain hostage to geopolitical and trade developments, with investors balancing the prospects of increased supplies on the one hand and geopolitical risks that could disrupt crude flows through vital corridors on the other.
With uncertainty continuing, Brent and West Texas Intermediate crude prices are expected to remain subject to sharp fluctuations in the coming period, especially with the release of important economic data that could determine the trajectory of global oil demand.
