Brent crude futures slipped more than 1% on Monday to trade around $67.2 per barrel, extending last week’s losses as geopolitical tensions showed signs of easing. Diplomatic talks between the United States and Iran helped calm immediate supply concerns, with both sides agreeing to continue discussions this week.
Washington described the talks as “very good,” while Tehran called them a “step forward,” giving markets some relief from fears of sudden disruptions to global oil flows.
Still, the broader relationship remains fragile. US officials warned that serious consequences could follow if a deal on Iran’s nuclear programme is not reached, while Tehran reiterated that uranium enrichment will continue. The cautious tone from both sides has kept traders alert, balancing optimism about diplomacy with lingering uncertainty.
Beyond geopolitics, attention has turned to global trade dynamics. Markets are watching India closely after comments suggesting New Delhi may reduce purchases of Russian oil under a potential trade arrangement. Indian authorities have not formally confirmed the move, stressing that energy security remains a top priority, a reminder that any shift in supply flows could take time to materialise.
Looking ahead, investors are awaiting upcoming OPEC+ and International Energy Agency (IEA) reports later this week, which are expected to offer clearer insight into supply-demand conditions and the broader outlook for oil markets.
In terms of performance, Brent has gained 5.27% over the past month, though it remains 11.38% lower compared to a year ago, based on CFD trading that tracks the benchmark market. For now, oil prices continue to reflect a delicate balance between easing geopolitical risks, evolving trade developments, and expectations around global energy demand.
