Oil prices fall as US, Iran agree to talks, easing conflict concerns

TOKYO – Oil prices fell on Thursday after the U.S. and Iran agreed to hold talks in Oman on Friday, easing concerns of a potential military conflict between them that could disrupt supply from the key Middle East-producing region.

Brent crude futures fell $1, or 1.4%, to $68.47 per barrel at 0152 GMT. U.S. West Texas Intermediate crude prices fell 91 cents, or also 1.4%, to trade at $64.23.

Oil prices surged about 3% on Wednesday after a media report suggested the planned talks between the United States and Iran on Friday could collapse.

However, later in the day officials from both sides said talks would go ahead on Friday though the topics up for discussion have not been settled

Tony Sycamore, market analyst with IG, pointed to the uncertainty around the talks as the reason for the swings, noting the price surge on fears of their collapse but they were easing as “these fears have since moderated on reports that the nuclear talks are back on.”

Iran is open to discussing its nuclear programme, including uranium enrichment, with Western countries, while the U.S. also wants to include Iran’s ballistic missiles, its support for armed proxy groups around the Middle East and its treatment of its own people.