Oil prices fell on Monday as renewed optimism over US-Iran nuclear negotiations and escalating concerns about US trade tariffs weighed on global energy markets.
The international benchmark Brent crude dropped by around 1.2%, trading at $66.13 per barrel. In comparison, US West Texas Intermediate (WTI) fell by 1.3% to $62.88 per barrel, marking a decline from its previous session close.
The decline follows significant developments in negotiations between the US and Iran. Both sides reported “excellent progress” after the latest round of indirect nuclear talks in Rome, facilitated by Oman and hosted by Italy.
Iranian Foreign Minister Abbas Araghchi described the discussions as “constructive and good,” with further expert-level technical discussions scheduled in Oman later this week.
The talks have raised hopes for a potential agreement that could eventually lead to the easing of sanctions on Iranian oil exports, increasing global supply and putting downward pressure on prices.
In addition to diplomatic progress, concerns about rising US-China trade tensions have also contributed to the bearish sentiment. The imposition of new US tariffs and the ongoing trade dispute between the world’s two largest economies have heightened fears of slower global economic growth and reduced fuel demand.
Recent data indicate that, despite a brief recovery in Chinese crude imports, both the Brent and WTI benchmarks have declined by approximately $10 per barrel since the start of April.
Market analysts have responded by revising down their oil price forecasts for the remainder of 2025. The Russian Ministry of Economic Development, for example, recently cut its 2025 Brent price forecast by nearly 17%, now projecting an average of $68 per barrel, down from $81.70 previously.
The International Energy Agency (IEA) and other industry observers also note that global oil demand growth is slowing, with projections for the fourth quarter of 2025 showing only a modest year-on-year increase.
The combination of diplomatic progress in Iran, persistent trade tensions, and subdued demand growth continues to create volatility and downward pressure in the oil markets.
Traders and policymakers are closely monitoring the situation, with further developments in US-Iran talks and global trade policy likely to shape price movements in the coming days.
