Oil falls 5pc on US-Iran de-escalation

NEW YORK: Oil prices fell 5 percent on Monday after US President Donald Trump said Iran was “seriously talking” with Washington, signalling a de-escalation of tensions with the OPEC member, while a stronger dollar and milder weather forecasts also pressured prices.

Brent crude futures were down USD3.28, or 4.7 percent, at USD66.04 per barrel by 1:01 p.m. ET (1801 GMT). US West Texas Intermediate crude fell USD3.29, or 5.2 percent, to USD61.82 per barrel.

Iran and the US will resume nuclear talks on Friday, officials from both countries told Reuters.

Trump told reporters on Saturday that Iran was “seriously talking”, hours after Tehran’s top security official Ali Larijani said arrangements for negotiations were underway.

The US president had repeatedly threatened Iran with intervention if it did not agree to a nuclear deal or continued killing protesters. The threats underpinned oil prices throughout January, said Phillip Nova analyst Priyanka Sachdeva.

Oil prices were also under pressure due to strength in the dollar after Trump’s nomination of Kevin Warsh as the next Federal Reserve chair.