Shafaq News

Brent crude prices ​slid on Monday after U.S.-Irantalks concluded in Switzerland with Tehran saying it had secured waivers foroil and ‌petrochemical exports, easing worries about a supply shortage inglobal markets.

Brent crude fell $1.19, or 1.48%, to $79.38 a barrelby 0416 GMT. Prices had climbed to $82.30 at the start of trading, fuelled by abumpy start to the talks with threats from U.S. President Donald Trump torestart the war on Iran and Tehran's announcement ​it had again closed theStrait of Hormuz.

U.S. West Texas Intermediate crude futures were at$76.73 a barrel, up 13 cents, ahead ​of the contract's expiry later on Monday. The more active August contract fell 21 cents to $75.64 a barrel. ⁠There was nosettlement in the U.S. market on Friday due to a holiday.

"The decline has been driven primarily byimproving prospects for ​a diplomatic breakthrough between the United Statesand Iran ... reviving hopes that sanctions on Iran could eventually beeased," said Sugandha Sachdeva, founder ​of SS WealthStreet, a NewDelhi-based research firm.

High-ranking U.S. and Iranian officials wrapped uptheir first round of talks in Switzerland on Monday, mediators said. The talksbegan on Sunday under the terms of a memorandum of understanding reached lastweek to extend a tenuous ceasefire from April for at least another 60 days.

Iranian Foreign ​Minister Abbas Araqchi said hiscountry had secured waivers for oil and petrochemical exports, the release ofsome frozen assets and the launch ​of a reconstruction and development plan forIran.

"Such a development would allow nearly 1.5million barrels per day of Iranian crude to return to international markets, ‌significantlyimproving ⁠global supply availability at a time when demand growth remainsmoderate," Sachdeva said.

'VERY REAL RISKS'

Before the talks, the number of ships that passed theStrait of Hormuz fell sharply on Sunday, shipping data showed, after Iranannounced it had again closed the waterway, citing Israeli and U.S. violationsof the interim peace deal.

Israeli strikes in Lebanon killed at least 20 peopleon Saturday, Lebanon's state news agency NNA said, one day after a ​ceasefirewith Hezbollah took effect, aimed ​at halting months of escalating ⁠violence.

"Recent developments show that moving towards amore permanent deal will be challenging, with very real risks of a flare-up inhostilities during the 60-day ceasefire," ING analysts said in a noteahead of the ​announcement of the conclusion of the talks in Switzerland.

Still, oil prices fell more than 8% last week ​onhopes of more ⁠supply from the release of cargoes stranded in the Gulf and thepotential lifting of U.S. sanctions on Iranian oil as part of the U.S.-Irandeal.

Over 25 million barrels of Iranian oil have passedthrough the virtual blockade line since Monday, the head of the NationalIranian Oil Company, Hamid ⁠Bovard, told ​state TV on Sunday.

The United Arab Emirates, Kuwait and Iraq have offeredmore oil to customers ​in the past week.

Iraq plans to restore crude production gradually tobetween 4.2 million and 4.3 million barrels per day, Iraq's deputy oil ministerfor upstream affairs said in ​a statement on Sunday.

(Reuters)

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