Oil Drops 1%, Market Awaits US-Iran Talks & Trump Tariffs
Oil prices fell more than 1% on Monday (February 23rd), as the market assessed the possibility of easing tensions as the US and Iran prepared to hold a third round of nuclear talks. At the same time, US President Donald Trump's latest tariff hikes added uncertainty to global growth and the energy demand outlook.
At 08:49 GMT, Brent was down 73 cents, or 1%, at US$71.03 per barrel, while WTI was down 75 cents, or 1.1%, at US$65.73 per barrel. The declines followed last week's rally, when fears of military conflict pushed Brent and WTI up more than 5%.
Analysts believe the market is now divided. Ahead of the nuclear talks, which are set to begin Thursday in Geneva, investor attention is also focused on the impact of the US Supreme Court's ruling that lifted some import tariffs and the government's subsequent response. The US Customs and Excise Agency stated that tariff collection under the IEEPA law would cease early Tuesday local time.
However, the tariff uncertainty has not disappeared. Trump said over the weekend that he would temporarily raise tariffs on US imports from 10% to 15% for all countries—the maximum level allowed under the legal framework—after the previous tariff program was struck down by a court. This combination of "rapidly changing rules" has fueled cautious sentiment in the market.
Meanwhile, Oman's Foreign Minister said a third round of US-Iran nuclear talks will be held on Thursday. Iran is reportedly ready to offer concessions on its nuclear program in exchange for sanctions relief and recognition of uranium enrichment rights. If negotiations lead to de-escalation, the geopolitical risk premium on oil prices could decrease—but the US tariff path still has the potential to dampen demand sentiment.
Source: Newsmaker.id
