Global oil prices slipped on Monday after high-level talks between the United States and Iran ended in Switzerland, with Tehran announcing it had secured waivers for oil and petrochemical exports a development that eased fears of supply shortages in global energy markets.
Brent crude dropped 61 cents to $79.96 per barrel, surrendering earlier gains that briefly pushed prices above $82. U.S. West Texas Intermediate (WTI) crude traded at $77.20 per barrel, while the more actively traded August contract stood at $76.04.
The market’s initial rally was driven by fresh threats from U.S. President Donald Trump to resume military action against Iran and reports that Tehran had again restricted traffic through the Strait of Hormuz.
However, sentiment shifted after negotiators concluded talks in Switzerland and signalled progress toward extending a fragile ceasefire.
Analysts said the talks reduced concerns over potential disruptions to global crude supplies.
“Progress between the U.S. and Iran is likely the main factor weighing on oil prices today,” said UBS analyst Giovanni Staunovo.
Iranian Foreign Minister Abbas Araqchi said Tehran secured waivers allowing oil and petrochemical exports to continue, alongside the release of frozen assets and the launch of a reconstruction programme.
The move effectively opens the door for more Iranian crude to return to international markets.
Iran’s oil exports had been heavily constrained earlier this month during a U.S. naval blockade.
According to Iranian officials, more than 25 million barrels of crude have already moved through the previously restricted shipping corridor since the easing of tensions.
The prospect of additional barrels entering the market has strengthened expectations of a supply recovery across the Middle East.
Iraq has announced plans to gradually restore production to between 4.2 million and 4.3 million barrels per day, while the United Arab Emirates and Kuwait have also increased crude offerings to customers.
Analysts at ANZ estimate that between two million and three million barrels per day could return to the market within the next four weeks, although they caution that a full recovery remains uncertain.
“Early gains will be driven by logistics rather than production,” ANZ said, noting that infrastructure damage and refinery disruptions could delay a complete restoration of supply.
Despite the improving outlook for oil exports, geopolitical risks remain. Israeli airstrikes in Lebanon reportedly killed at least 20 people on Saturday, just one day after a ceasefire with Hezbollah took effect, highlighting the fragile nature of the wider Middle East peace process.
For now, traders appear to be focusing on the possibility of increased oil supply rather than renewed conflict, pushing crude prices lower after weeks of war-driven volatility.
