FX.co ★ Oil Slides as US-Iran Talks Ease Supply Fears

WTI crude futures declined by over 1%, nearing $64 per barrel on Thursday, marking an end to their two-day rise. This decline came after Tehran announced plans to engage in discussions with Washington this week, alleviating fears that a wider conflict might disrupt oil supplies. Iranian Foreign Minister Abbas Araghchi indicated that these talks are scheduled to occur in Oman on Friday, and a White House representative confirmed that the US and Iran are still committed to negotiating a potential nuclear agreement. However, uncertainties continue to cloud the extent of these negotiations. While Tehran wishes to limit the agenda to its nuclear program, Washington aims to expand discussions to encompass Iran's ballistic missile initiatives, support for regional militant factions, and human rights issues. The oil market had seen a rally in the last two sessions, driven by rising tensions in the Middle East, which had increased the geopolitical risk premium.