Oil Prices Slip Amid U.S.-Iran Nuclear Talks and OPEC+ Meeting

Oil prices slipped by 1% on Tuesday as concerns over a potential supply glut rattled investor confidence. The drop comes in the wake of progress in nuclear negotiations between Iranian and U.S. delegations, as well as anticipation that OPEC+ may soon agree to boost oil output.

Brent crude futures closed the session down 65 cents, or 1%, settling at $64.09 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude declined by 64 cents, or roughly 1.04%, to close at $60.89 a barrel.

The market’s downward movement reflects growing anxiety over rising global supply. Three OPEC+ delegates told Reuters that the alliance is likely to agree on accelerating output increases during a key meeting scheduled for this Saturday.

This comes on top of the regularly scheduled OPEC+ meeting next week, where further production hikes are also expected to be discussed.

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Adding to the pressure are developments in the ongoing nuclear talks between Iran and the United States. While the fifth round of negotiations concluded last week in Rome, diplomats reported limited progress, particularly around contentious issues such as Iran’s uranium enrichment program.

Despite unresolved differences, the mere possibility of a deal that could ease sanctions on Iran has markets on edge. If sanctions are lifted, Iran could re-enter the global oil market with additional supply—further tilting the balance and potentially dragging prices down.

Dennis Kissler, senior vice president of trading at BOK Financial, explained the market reaction: “OPEC+ is likely to agree on further output increases, which, if it occurs, will be a major near-term headwind for crude, especially if Iran adds barrels in a possible deal.”

However, if talks between the U.S. and Iran break down, sanctions would remain in place, limiting Iran’s oil exports and potentially tightening supply again.