Brent crude futures fell more than 1% toward $68 a barrel on Thursday, ending a two-day advance after Tehran confirmed it would hold talks with Washington this week, easing fears that a broader Middle East conflict could disrupt oil supplies.
Iranian Foreign Minister Abbas Araghchi said discussions are scheduled in Oman on Friday, while a White House official confirmed that both countries plan to engage on a potential nuclear deal.
Uncertainty remains over the talks’ scope. Tehran aims to confine discussions to its nuclear program, while Washington is seeking to expand the agenda to include Iran’s ballistic missile program, support for regional militant groups, and human rights issues.
Oil prices had climbed over the previous two sessions, lifted by rising geopolitical tensions in the Middle East, which increased the market’s risk premium.
The confirmation of diplomatic talks weighed on prices as traders reassessed the immediate risk to supply.
Analysts say the market will continue to watch US-Iran diplomacy, along with broader geopolitical developments, for clues on the direction of oil flows and global energy prices.
