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Oil prices fall amid US-Iran talks optimism
Oil prices edged lower on Monday off the back of progress announced in negotiations between Iran and the US in Switzerland.
Brent crude oil, the international benchmark, fell more than 1% to trade at $79.70 per barrel in afternoon Asian trade. It was trading at around $70 per barrel before the start of the war in late February.
"With the controversial — and fragile — US-Iran peace process now underway, attention is turning to how quickly tankers return to the Strait of Hormuz to load energy supplies," said Thomas Mathews, head of Asia-Pacific markets at Capital Economics, in a note to investors.
Moving towards a more permanent deal will be challenging, with very real risks of a flare-up in hostilities," ING commodities strategists Warren Patterson and Ewa Manthey in a commentary on Monday.
The Iran talks could contribute to a broader stock market rally, some analysts also said, although it remains too early to know for sure.
"Following the positive response last week to reports of a US-Iran ceasefire, markets are likely to open with a cautious tone to start the new week as it remains clear that the situation in the Middle East remains fragile," said National Australia Bank's head of markets research, Skye Masters.
