FX.co ★ Oil Slips on U.S.-Iran Deal Hopes

WTI crude oil futures experienced a 2.4% drop, closing at $61.60 per barrel on Thursday. This decline was influenced by heightened anticipation surrounding a potential U.S.-Iran nuclear agreement, which could notably increase Iranian oil exports. The drop followed remarks by President Donald Trump from Qatar, where he announced substantive negotiations with Iran aimed at reaching a long-term peace accord. An Iranian representative also expressed a willingness to commit to a deal in return for the lifting of sanctions. Analysts observed that such an agreement might enable Iran to enhance its oil exports by up to 1 million barrels per day, potentially exerting downward pressure on oil prices. Nonetheless, this effect could be mitigated by OPEC+ slowing its planned supply increases, despite current intentions to augment output further in June. The market continues to exercise caution due to the complexities involved in enforcing any deal and the ongoing geopolitical intricacies that could affect the overall picture.